Draft Tax Laws Mark Shift in Syria’s Fiscal System

The Syrian Ministry of Finance has announced sweeping reforms to the country’s taxation system. On September 6, the Ministry published a draft Law on Income Tax, followed on September 23 by a draft Law on Sales Tax. The two drafts have drawn mixed reactions: while some praised their “clarity,” high exemption thresholds, and the unified approach to income tax, others warned that the new system could result in a decline in tax revenues and limit the state’s capacity to spend in priority sectors.