Taxation System in Syria
Taxation in Syria
According to Lawrence, the taxation system in Syria is partitioned into three main categories. These categories are profits gathered from all commercial, non commercial and industrial activities the wages of the citizens in the country and lastly the income got from all the movable capital assets. These are listed in the Legislative Decree No.85 of 1949 which regulates all the income tax received. The tax laws in the country are administered by the tax department and the ministry of Finance is responsible for supervising them.
Main Taxation Areas
Taxation from companies
A business profit tax is charged on all net profits that have been accumulated from commercial and non commercial activities, net profits acquired through industrial and professional activities and any net profit got from activities which are not subject to wage tax, income tax or property tax. There is also a business profit tax which is levied on individual profits and the profits of corporate entities. This tax is applied progressively from ten percent to forty five percent, according to the amount of taxable income. Share holding companies are charged a flat rate of thirty two percent while industrial limited liability countries are charged at forty two percent.
Individual taxation
According to Roeder, each person is liable to the same taxes as those of a company on income from real property, movable capital and business income. Individuals also pay other taxes in addition to these. These taxes include wage and salary tax. Income tax, taxable under the wage and salary tax mainly includes additions of the basic salary, all the personal allowances, bonuses, overtime and foreign benefits. This income is taxed in rates of five percent to 12.5 percent progressively. Any foreign individual working in Syria is also subject to the same rules and rates of taxation as those of Syrian citizens.
Other taxation areas
Tax on Income from Movable Capital
This tax applies to interest, loyalties and also foreign source dividends. All royalty payments are also subject to this tax and are paid by the recipient unless they are subject to the tax on business profits for the recipient. This tax is charged at a flat rate of 7.5 percent to all Syrian residents and fifteen percent on the income received from non Syrian residents unless the rate has been reduced by an applicable tax agreement (Oerton, 1999).
Real property tax
A property registration fee should be paid upon registration, sale, assignment and inheritance of a real estate. All real property gains are taxed at rates which range from seventeen percent to sixty percent. According to the ministry of finance estimates, these fees amount to ten percent of the value of the property (Underwood, 2004).
Stamp duty
A stamp duty is imposed on all documents that are related to the formation of a company, a contract, any deed, a variety of instruments and also many transactions in Syria. This tax is levied at a rate of 0.624 percent on all contracts signed inside Syria. The stamp duty is also charged at fixed or proportional rates depending on the type of transaction being carried out.
Services provided as a result of Taxation in Syria.
Taxing in Syria despite others things serves the community and provides balance between its people. The government has been able to carry out many operations from the taxes collected from the people. For instance, free education has been introduced in the country. As a result, almost all citizens in the country are learned. The schools and institutes have the required facilities to carry out their operations. Another case is on health insurance. Treatment in all government hospitals is free and the hospitals have been equipped with the relevant facilities. The doctors in the hospitals are also highly qualified. The living standard of the people has been improved also and the poor have been provided with better housing. These factors and others are discussed in detail below
Education policies in Syria
The level of education in Syria is very high despite the low income of the country with a high growing population. Lessons in the classes are taught in Arabic. English and French are also taught as foreign languages with English being given the top priority. According to the 2007 census, the records indicate that 98 percent of schools in the country are state run and only 2 percent being private. The total number of students who had enrolled in the schools was eight million. The school system is divided into six years of primary education followed by a three year vocational training course then the student is admitted to the university depending on the grades obtained.
Due to the tax being levied on the citizens, the education level is very high. Syria has introduced free education on all levels. The government has been able to sponsor all the non private education institutions. Many schools have been built as a result of taxation. Scholars have been given free access to these schools and institutions depending with the results obtained in the final school leaving examinations. Many primary schools are available to cater to the Syrian population which is growing at a high rate. There are many secondary schools as well, and the level of education for the Syrian citizens is rising rapidly every day.
Technical and vocational training is highly encouraged in the country with the government building large numbers of these training colleges. Most of the people recruited in these technical institutes are mainly school droppers and those who did not get the passing grade required for them to be enrolled in higher education levels. There is also University institutes of Technology which run for two years. Mostly students enroll into these institutes if results were not according to the university requirements. Many students who do not wish to continue with the lengthy education policies of a university also end up in these institutes. All this was built by the government with help of the taxation system in the country. Each of these instates is under a ministry, depending on the type of education it offers but many fall to the ministry for Higher Education ( Sopensky, E. 2002).
All the technical workers working in these institutions have been employed by the government. Keeping in mind that the Students do not pay any fee, it is the government which caters to all these expenses. These institutions and universities have almost all the facilities required by the students for learning. Most of the universities shelves are filled with books required to do the research work. The lecturers and the non-teaching staff area also employees of the government. Many operations in these institutes have been subsidized by the government and students spend very little cash while in school. Through these operations, we are able to appreciate the taxation system in the country. It is clear that the government is using the tax received from its people to improve the education levels in the country.
Health policies in Syria
According to Pages, the government of Syria has built many hospitals in the country. Treatment is free in all the government hospitals. These hospitals have been equipped with the necessary facilities so as to be able to cater to all the patient needs. These facilities include x-ray machines and also equipment with the latest technologies for doing various scan. The population in Syria is very large and many people report to this hospitals everyday. These hospitals have been built in every part of the country and in cases where there is no public hospital available the government has ensured that there is a dispensary where the people with minor sicknesses can go to.
There are government ambulance services also in all the public hospitals. These services are of great help to the people and especially in emergency cases. For instance, in cases where a road accident has occurred, the ambulances rush people to the big hospitals for emergency treatment and care without any charges. All these expenses have been catered to by the government through the taxes collected. These ambulances have been bought by the government and it also ensures that they are in good conditions. All the hospitals have been stocked with all kinds of medication. The government incurs the expenses of importing majority of these drugs from other countries. According to the estimates done, about thirty seven percent of the national and private health budgets in the country are being spent for drugs (Lawrence, 2001).
All the personnel in these government hospitals are civil employees. The doctors are highly trained and have all the required skills. As a result, their pay is usually very high. It is the government which incurs the expense of paying for their salaries. It has also been estimated that about 60 percent of institutional current health care costs in the public sector are for the personnel. This clearly indicates that the government needs the support of the citizens and it is only through tax payment. No one can deny that majority of the government employees are in the health sector. Many hospitals are being built up everyday to cater for the rapidly growing population in the country. All these hospitals have to be well equipped and should have enough personnel so as to be able to run well. It is upon the government to ensure that all this is taking place.
In many times, there has been disease spreads in the country. The government does all it can in its ability to provide the required medication. In many cases, it goes to the extent of importing drugs from other countries. It also carries out free vaccination operations to prevent its citizens from dangerous sicknesses. In order to curb the spread of HIVAIDS, the government has launched many awareness centers where people are getting tested to know their status. For those who were tested as HIV positive the government has provided free ARVs in the government hospitals. The launching of seminars to teach people on the disease is also the operation of the Syrian government. It is therefore clear that the government is doing all it can to promote the health situation in the country. It is only through payment of taxes these operations are successful.
Provision of better living standards
Through government projects, many people have been employed. This has been a big shot to the economy of the country. The government is considering the living standards of its people, and especially the poor and doing all its best to improve them. The poor are being offered job opportunities in the government departments. Through this, it has been able to curb the poverty levels in its country. Others who are unable to do the jobs are given free salaries to help them survive. This includes the poor and also the aged without people to take care of them. The government is doing all this using the taxes which are collected everyday in the country.
When a person retires, the government offers pension services to them. As a result, they are able to lead their lives just as before. Free housing is also given to the poor and aged. For instance, the government has built many homes for the poor and aged. In these homes, people are employed to take good care of them and as a result they are able to lead better lives. The government spends a lot of money in building these homes and also paying the employed personnel. Building of homes for the people living in the slums has upgraded the peoples living standards. Through all these operations, the government is able to improve the peoples living standards using money levied in taxes.
Many roads are being constructed in the country everyday. The ministry involved with road works is making sure that they are according to the citizens expectations. Building of courts and prisons has also helped to reduce crime levels in the country. Through them, criminals are detained and corrective measures are given to them. As a result, people have been protected from such people who can harm then. Personnel working in these departments such as lawyers and judges have been employed by the government. The government has also built parastatals where people and especially the farmers are able to sell their products. These include cereal boards and also dairy creameries. Through them, farmers are able to get pay from their produce and also people in the country can buy products from them at a cheaper price.
Conclusion
Many people always blame the government on collection of taxes claiming that the rates are high. This may be true but it is also important to look at what the government is doing with the taxes collected from people. There are many projects that the government has been able to carry out. All these are aimed at improving the living standards of the people. For instance, many schools have been built and the government is still offering free education and scholarships to many students. Looking at the health sector, there are many government hospitals where treatment is free and drugs are available. The living conditions of the people have generally improved from government policies such as giving pension to the retired. It is therefore obvious that without taxation the economy would be low and the poverty level would be high.
Recommendation
Many people evade paying taxes and majority blame the government saying that it is collecting excess money from the citizens. According to the discussion, it is clear that majority of the taxes collected are used in the development of the country. I would therefore recommend that citizens stop the habit of evading paying taxes and take the practice positively since it is to the benefit of the country and the government does not use the taxes collected for personal gains.