Syria plans income tax shake-up

President Assad is moving ahead with economic modernisation

Syria is to reform its income tax system as the country continues with its economic modernisation.

From the start of next year Syria is abolishing the old system of different rates of income tax for various trades, the state news agency said.

Instead, workers in both the public and private sectors will now pay the same amount, dependant on their earnings.

The economy remains mostly state-controlled, despite legal changes lifting limits on private enterprise.

The new income taxes will range from 5% for salaries of 5,000 to 8,000 Syrian pounds ($113 to $181; £67 to £107), up to 20% for salaries that exceed 30,000 Syrian pounds ($600; £400).

That is an American matter that will not harm Syria Syrian official

But military personnel, police officers, firefighters, clerics and domestic workers will be exempted from paying anything.

Anyone convicted of tax evasion will face one month in prison and a freeze on their membership of trade, commercial and agricultural associations.

Long-term change

The changes to the revenue system form the latest part of the economic shake-up since the death of long-time President Hafez al-Assad, who died in June 2000 to be succeeded by his son Bashar.

The new legal structures have yet to produce much change on the ground despite the ostensible intentions of the new leadership.

The country's economic woes have not been helped by ongoing international troubles.

Syria is accused by the US and some of its allies of supporting terrorism - in particular of backing people attacking coalition forces in Iraq.

The US Congress voted earlier this week to back wide-ranging economic sanctions, including banning US oil companies from investing in the nation's energy industry.

A Syrian official said: "If Washington chose for instance to deprive American companies from working in Syria, that is an American matter that will not harm Syria."