{"id":3063,"date":"2009-05-22T04:19:19","date_gmt":"2009-05-22T04:19:19","guid":{"rendered":"http:\/\/joshualandis.com\/blog\/?p=3063"},"modified":"2009-05-22T13:26:15","modified_gmt":"2009-05-22T13:26:15","slug":"syrias-new-tax-code","status":"publish","type":"post","link":"https:\/\/joshualandis.com\/blog\/syrias-new-tax-code\/","title":{"rendered":"Syria’s New Tax Code"},"content":{"rendered":"

Addendum by Ehsani2<\/strong> (May 22, 2009)<\/p>\n

The initial impetus for my comment on taxes came from reading the latest change in Syria\u2019s tax code. The amendment concerned the initial tax bracket that is exempt from taxation. Income up to SYP 5,000 was exempt from tax. This number was raised to just over SYP 6,000. The rationale of the amendment seems to be an acknowledgment that an income as low as SYP 6,000 ($130 per month and $1,560 per year) ought to be exempt from tax. <\/p>\n

In the U.S., a taxable income (after deductions and exemptions) of $100,000 per year ($8,333 per month) is taxed around $22,372 for the year ($1,864 a month). Households are then taxed at the state and local levels in addition to the above federal taxes. Indeed, starting next year, those making over $373,000 per year will be taxed at 39.6% up from 35%. Total taxes for high income residents of the state of NY are likely to pay just over 50% of their income. Europeans are already very familiar with such tax brackets. Syrians \u201cwere\u201d all too familiar with this too. There was a time when the highest income bracket in Syria faced a tax levy approaching 80%.<\/p>\n

The Syrian tax code has been streamlined significantly since then. To encourage compliance, the highest tax bracket has been lowered to 22%. <\/p>\n

I am jealous. I wish my American taxes would be as low. What is considered a socialist country (by its own constitution) taxes its highest earners a maximum of 22% while the world\u2019s leading capitalist nation chooses to tax its own high earners as high as 52%. It was in this context that I made my initial observation. <\/p>\n

What bothers me about the Syrian tax system is the following:<\/p>\n

It is hard to live on $130 or even $1600 a month. Paying any tax on income over $130 a month seems harsh. People working for the government and those on fixed income get their taxes deducted from their income at the source. The current tax code assumes that the highest tax bracket is $1630 a month and this is taxed at 22%. As many people may agree, making $1630 a month does not go a long way in Damascus and is certainly not in the spirit of being a high earner. <\/p>\n

When I asked a leading business man in Damascus how he feels about paying \u201conly\u201d 20% on income, I got this response:<\/p>\n

\u201cWhy should I pay 20%? What do I get for that? What services does the Government provide me with?\u201d<\/p>\n

This response is rather common for most high rollers in the country. <\/p>\n

The fact is that the Government provides plenty of services but gets very little credit for doing so. Education is free at all levels of schools and universities. Many commodities and finished products are heavily subsidized. Yet, no one thinks of these as \u201cservices\u201d. Most people see them as a right. <\/p>\n

Tax compliance for high income earners is difficult in most less developed countries. Syria is no exception. Not only that the 22% highest tax bracket is rather low by world standards, most high rollers seem to find a way to avoid paying it altogether. One business man boasted to me once that he does not recall the last time he paid any tax. <\/p>\n

Syria faces fiscal pressures going forward. Its population doubles roughly every 22 years. It has very expensive subsidy program that it finds hard to dissolve. Its tax collection and compliance program for non-fixed income earners is weak. Those that are wealthy enough to pay the tax are too connected and too powerful to pay their fair share. Low paid government employees in charge of collecting the tax are no match for the business tycoons and their ample resources. <\/p><\/blockquote>\n

Ehsani2 writes about Syria’s new tax code:<\/strong><\/p>\n

Even a capitalist like me finds Syria’s economic system too capitalist. The fat cats pay hardly anything while those on fixed incomes pay the following based on the new decr\"\"ee.<\/p><\/blockquote>\n

Monthly earning range Tax rate
\n$0-$131 0%
\n$132-$261 5%
\n$262-$348 7%
\n$349-$435 9%<\/p>\n

More on Syria’s tax system:<\/p>\n

if you make $ 1,000 per month, your tax is $106 or 10.6%
\nif you make $ 2,000 per month, your tax is $311 or 15.5%
\nif you make $ 5,000 per month, your tax is $971 or 19.4%
\nif you make $10,000 per month, your tax is $2,071 or 20.7%
\nif you make $50,000 per month, your tax is $10,871 or 21.7%
\nif you make $100,000 per month, your tax is $21,871 or 21.9%
\nif you make $500,000 per month, your tax is $109,871 or 22.0%<\/p>\n

…….WHAT ARE WE DOING HERE? ……..The poor pay that 20%….while the rich, capped at 20% do not pay it ………In effect people on fixed incomes pay while the fat cats watch.<\/p><\/blockquote>\n

414 Syrian intellectuals banned from Travel. The following article published in Kulina Shuraka reveals that a new report describes the many Syrians who have had their passports taken away.<\/p>\n

????? ???????? ??????????? ????????? ?????????? ????????? ?? ????<\/a>?
\n????? \t???? ?????
\n??? – (???? ?????)
\n22\/ 05\/ 2009<\/p>\n

??? ????? ???? ????? ?? ????? ??? ( 414 ) ????? ???????? ????? ??????? ???????? ?????? ??????? ?? ????? ???? ?????? ?????? ??????? ???? 71% ??? ????? ??? ????? ???? ????? ???? ???? ????????? ?? ????? ??? ????? ???? ????? 24%.
\n???? ??????? ?????? ?? ?????? ?????? ??????? ????? ???????? ?? ????? ??????? ????????? ?? ????? ?? ???? ?? ??? ??? ??? ????? ?? ????? ?? ???? ???? ???????? ???????? ???????? ????? ????? ??? ????? ??????? ?????? ?????.
\n??? ????? ???? ????? ??????? ????? ????? ?? ????? ?? ?????? ???? ?????? ??? ???? ????? ?? ???????? ????? ( 3.7 % ) ???? ???? ??????? ?? ????????? ?? ????? ?? ???????? ???? ????? ??????? 3% ???? ????????? ??? ????? ?????? ??????? ?????? 2%
\n????? ??????? ?? ?????? ?????? ?? ????????? ?? ????? ?????? ??? ?????? ?????? ????? ?????? ???????? ????? ?? ??????? ????…
\n??? ???? ?????? 91% ?? ??? ????????? ?? ?????? ??????? ?? ??????.
\n??? ?? ??? ????????? ????????? ?? ????? ????? ??????? ???? ?? ?????? ????? ????? ?????? ?? ?????? ?????????? ???? ???????? ?????????? ?????? ????? ?????????.<\/p>\n

Syria to Open Its Economy to Foreign Investors<\/a>
\nBy JAY SOLOMON, MAY 14, 2009<\/p>\n

WASHINGTON — Syrian President Bashar Assad’s government is pushing ahead with steps to open up its economy to investment, senior Syrian officials said, although the U.S. is maintaining broad economic sanctions on the Arab nation.<\/p>\n

Damascus is preparing to grant new private-banking licenses to foreign investors, while expanding the Damascus Securities Exchange, which made its debut in March, these officials said. It’s also wooing foreign investment in manufacturing and tourism to support economic growth, which has averaged about 5% over the past five years.<\/p>\n

“This economy is virgin. There are many opportunities to explore,” Central Bank Governor Adib Mayaleh said in an interview.<\/p>\n

Two men in a Damascus caf\u00e9 beneath a poster showing Syrian President Bashar Assad, right, and Hezbollah leader Hassan Nasrallah of Lebanon. The U.S. is hoping to improve relations with Mr. Assad’s government in an effort to weaken Syrian alliances with Iran and groups such as Hezbollah.<\/p>\n

Two men in a Damascus caf[eacute] beneath a poster showing Syrian President Bashar Assad, right, and Hezbollah leader Hassan Nasrallah of Lebanon. The U.S. is hoping to improve relations with Mr. Assad’s government in an effort to weaken Syrian alliances with Iran and groups such as Hezbollah.<\/p>\n

Two men in a Damascus caf[eacute] beneath a poster showing Syrian President Bashar Assad, right, and Hezbollah leader Hassan Nasrallah of Lebanon. The U.S. is hoping to improve relations with Mr. Assad’s government in an effort to weaken Syrian alliances with Iran and groups such as Hezbollah.<\/p>\n

It’s a new direction for Damascus, which has maintained one of the Middle East’s most closed economies in recent decades. Middle East analysts also question whether Mr. Assad can achieve his economic goals without changing his authoritarian political system and improving relations with Washington.<\/p>\n

President Barack Obama has said he is interested in developing better ties with Syria and sent two high-level diplomatic delegations to Damascus. But last week, Mr. Obama renewed five-year-old economic sanctions on Damascus because of U.S. concerns about Syrian support for militant groups, such as Hezbollah and Hamas, operating in Lebanon and the Palestinian territories.<\/p>\n

U.S. officials also charge that Damascus continues to facilitate the flow of foreign fighters into Iraq, an allegation Syria denies.
\n[Syria]<\/p>\n

Mr. Assad assumed power from his late father, Hafez Assad, in 2000 amid high hopes that the new leader’s youth and Western education could lead to changes in Syria’s rigid one-party state.<\/p>\n

Mr. Assad, 43 years old, has displayed little appetite for opening Syria’s political system, say Middle East analysts, imprisoning pro-democracy activists in recent years and closing independent media outlets. The International Monetary Fund and other financial institutions, however, praise Mr. Assad and his economic planners for liberalizing finance and trade while reorienting Syria’s economy away from a dependence on oil as their domestic production dwindled. Damascus has moved from exporting nearly 700,000 barrels of oil a day in the mid-1990s to becoming a net importer of oil.<\/p>\n

As recently as 2004, the state controlled the banking system. Today, about a dozen private banks — mostly Arab-owned — operate, Syrian officials said. Damascus pegged the Syrian pound to an IMF-administered basket of currencies and allowed its largely free conversion into U.S. dollars. The government is privatizing some state-owned firms and bringing in independent managers to help oversee others. Foreign direct investment in Syria jumped to $2.1 billion last year from $400 million in 2004, according to the IMF. Syria’s non-oil exports, meanwhile, are projected to grow to more than $9 billion next year from less than $4 billion in 2004.<\/p>\n

“We see a clear move toward economic reforms in Syria,” said Khaled Sakr, the IMF’s mission chief for the country. “It’s cautiously and steadily moving in the right direction.”<\/p>\n

Mr. Mayaleh, the central-bank governor, said another seven to eight private banking licenses will be put up for bidding, and Damascus hopes to see an additional 10 companies listed on the Syrian stock exchange. “We’re open for investment in our economy,” he said.<\/p>\n

Analysts say Syria’s economy still faces significant challenges. Damascus is running sizable annual budget deficits, and it is unclear whether the country can develop new streams of revenue to offset dwindling oil supplies. Mr. Assad has been criticized by Washington for directing contracts to his family and political allies.<\/p><\/blockquote>\n

The Truth About Richard Bruce Cheney<\/a>
\nby Col. Lawrence B. Wilkerson
\nThe Washington Note<\/p>\n

Report: Russia won’t sell Syria fighter jets due to Israeli pressure<\/strong>
\nBy Reuters, 20\/05\/2009<\/p>\n

Russia has halted plans to sell MIG-31 fighter jets to Syria because of pressure from Israel, the Kommersant daily reported on Wednesday citing an unidentified source in Russia’s defense industry.<\/p>\n

In 2007, Russia agreed to supply Syria with eight MiG-31 fighters, known in the West by NATO codename Foxhound, for about $400-$500 million, the paper said.<\/p>\n

Kommersant, a commerce-oriented newspaper published in Russia, quoted an unidentified person close to Russia’s state arms exporter as saying that Moscow had halted the contract due to pressure from Israel.<\/p>\n

The paper quoted another source in an unidentified Russian ministry as saying that the contract had been halted because Syria could not produce the money to pay for the fighters.<\/p>\n

The MiG-31 is a supersonic, high-altitude fighter plane. It has a maximum speed of 3,000 km\/hour (1,860 miles\/hour) and a combat radius of 720 km (450 miles.)<\/p>\n

Russia’s state arms exporter, Rosoboronexport, declined to comment on the report. A spokesman for the Syrian embassy in Moscow was unavailable for comment.<\/p>\n

Russia’s defense industry, which says it is starved for investment, was rattled last year when Algeria returned 15 MiG-29SMTs to Russia, saying the aircraft contained some substandard parts.<\/p><\/blockquote>\n

\"\"<\/a>
\nSyria and the ‘China Growth Model’<\/a>
\nBen Simpfendorfer, 05.21.09
\nChinese traders say Syria is no ‘Axis of Evil.’<\/p>\n

HONG KONG — Below is the last of three excerpts from “The New Silk Road,” by Ben Simpfendorfer, reproduced with the permission of Palgrave Macmillan.<\/p>\n

In July 2004, President Bush spoke of an Axis of Evil during his State of the Union Address. It was a bold declaration made in the aftermath of September 11.<\/p>\n

Iran, Iraq, and North Korea were the original members of the Axis of Evil. But Under Secretary of State John Bolton added Syria to the list the following year. Washington imposed economic and political sanctions in 2004, later tightening them. Although the European Commission signed a Partnership Agreement with Syria in 2004, they said it was “difficult to imagine deepening our relations” given the current political circumstances.<\/p>\n

Relations with America and Europe remained frosty a few years later, especially after accusations of Syrian involvement in the assassination of former Lebanese President Rafiq Hariri. It was as if the country had fallen off the map.<\/p>\n

But many Chinese traders disagreed with the West’s assessment. Instead, they have labeled Syria a “cohesive force” (ning jiu li) for the Arab world.<\/p>\n

It was their personal view, rather than official Chinese policy. But the expression recognizes the important historical role Syria has played as a terminal point for the Silk Road and as a trading hub for the region. These traders are willing to bet that Syria will continue to play this role despite the economic and political sanctions imposed by America and Europe. They assume that the underlying tides of history are too powerful for the sanctions imposed by a foreign government. Indeed, China itself is rising on much the same historical tide that has buoyed Syria. The number of Chinese traders walking the streets of Damascus continues to grow even as Washington tries to wall the country off from the rest of the world.<\/p>\n

Syria’s status as a “cohesive force” is aided by its relative stability. This is no small achievement. The country suffers from the same sectarian divisions between Sunni, Shi’a, Christian, and Kurd that afflict Iraq and Lebanon. The country also shares borders with Iraq to the east, Lebanon to the west, and Israel to the south. An intrusive security apparatus helps keep the peace. And, although the Syrian government has openly defied America and Israel in past decades, it has avoided inciting armed conflict.<\/p>\n

This strategy is now paying off handsomely. Chinese traders refer frequently to Syria’s “stability” as a reason to base their operations in the country. How long the country will remain stable is debatable. But at least for now the rise of China is helping to ignite memories of the country’s historical role as a trading hub.<\/p>\n

The Adara Free Zone is a poster child for the chance that Syria may choose to take the second, more optimistic, path before it. The industrial park enjoys duty-free status and is a major transshipment hub for the region. Zhou Dongyun has recognized the value of the Adara Free Zone as a commercial hub. Her newly constructed China City is especially popular among visiting Iraq officials. Its two-storey exhibition halls sell everything from office equipment to factory equipment.<\/p>\n

Chinese traders are also using the Adara Free Zone to sell to the broader region, in particular Lebanon, as reconstruction efforts after the 2006 war have spurred demand for construction materials. The industrial park is playing a similar role to the open-air squares in the old city of Damascus that once hosted traders arriving along the Silk Road.<\/p><\/blockquote>\n

Lebanon: Suspected Israeli spy involved in death of Hizbullah official<\/a>
\n05.21.09, 09:04 \/ Israel News<\/p>\n

Nasser Nader, one of the main suspects in the Israeli espionage affair in Lebanon, confessed in his investigation to his involvement in the assassination of senior Hizbullah member Ghaleb Awali on July 19, 2004, a Lebanese security source told the as-Safir<\/a> newspaper.<\/p>\n

According to the report, Nader, who was the source said was “one of the most important personas for the Israeli Mossad”, confessed to his involvement in “preparing the grounds for the assassination of Hizbullah officials”. (Roee Nahmias)<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Addendum by Ehsani2 (May 22, 2009) The initial impetus for my comment on taxes came from reading the latest change in Syria\u2019s tax code. The amendment concerned the initial tax bracket that is exempt from taxation. Income up to SYP 5,000 was exempt from tax. This number was raised to just over SYP 6,000. 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