Legislative decree no./61/ year 2004 concerns amendment of consumption expenditure duty law.

Syrian Arab Republic

Legislative Decree No. /61/

According to the Provisions of the Constitution , the President , issues the following:

Article/1/ -Duty is imposed on the consumption expenditure, including terms mentioned in the two tables No. /1&2/ annexed to this decree.

Article/2/ -that modified by legislarive decree no.41 dated 6/5/2005 becomes as follows :

The duty, stipulated in this legislative decree ,becomes due according to the following :

A-      This duty is paid for rendering service and is added to the invoice according to a certain percentage that is deducted from the charge relating to services mentioned in the table No./1/annexed to this decree.

B-      This duty is paid according to a certain percentage that is deducted from the value of the materials mentioned in the table No./2/ annexed to this decree as the following:

1)    When clearing imported materials at the Customs houses according to a certain percentage that is deducted from the value which is basis of specifying customs duties ,plus customs duties and others such as fees and tax imposed on the commodity.

2)    When selling goods , manufactured locally ,to those practitioners in commercial and industrial career, wholesalers and retailers according to a certain percentage that is deducted from the selling value.

3)    When labeling golden jewels and jewelry by professional label related to concerned professional assembly, in addition to the financial label .The type of label and the official way of labeling the jewels shall be specified according to a decision by the minister of finance.

4)    When registering for the first time, the purchase of private passenger cars only once, at the transportation departments.

Article/3/ A-:The seller(local manufacturer) of one of the goods mentioned in the table of the profession No./2/ and each investor of the one of the services mentioned in the table No./1/ in the article /1/,have to submit to the financial departments a statement notifying his practice of the job within 30 days from the start of commencement .

B :The seller(local manufacturer) of any goods ,or the investor of services mentioned in the two tables No./1&2/ have to submit an invoice or a contract for every operation of selling or achieved services and their values subject to the provisions of this legislative decree according to the requirements of the operation's nature.

C :The seller(local manufacturer) and the investor of service have to keep registries and necessary records ,that present assets ,circulation of goods, and services in his shop, institution ,or in the location where he works ,and have to present concluded contracts when necessary.

D : The seller(local manufacturer) and the investor of service have to submit to the Financial Department, where his shop ,institution ,or the location he works in, within first ten days of the next month ,a statement in which he register his sales or services paid in the previous month ,and should moreover pay the due fees to the mentioned departments the moment he presents the mentioned statement. Then the financial departments ,that receive mentioned statements , shall deliver a copy of these statements to the financial departments in which the main office mentioned in the commercial registry of the taxpayer is located.

Article/4/ :First – The below mentioned financial Penalty shall be imposed on  every disobedient to the following provisions:

A-   Not committing to the paragraphs/A&D/of article/3/:

/2500/S.P for every breach of the two mentioned breaches in addition to the penalty stipulated in the paragraph/D/.

B-   Not committing to the paragraphs/B/of article/3/:

/2005/S.P for every breach taking place during the given period of presenting the statement stipulated in the paragraph /D/of the previous article/3/or/10% / of the value of the invoice or the non-concluded contract ,whichever is higher .

C-  Not committing to the paragraph/C/of article/3/:

/2500/S.P or /10% /of the value of the goods and its fees not registered in the registries or records ,whichever is higher.

D-  The delay of the above mentioned in presenting the statement stipulated in the paragraphs/A&D/ of article /3/ or the delay in payment of the fee:

/1% /of the fees for each delay day provided that penalty should not exceed double of the fee.

Second - The transgressor has the right to object on the breach note, within seven days from the date of his receipt of the note .The objection should take place in front of committee, formed in every governorate, headed by a judge graded as consulter /nominated by the Minister of Justice/and by a member representing the financial departments/nominated by the Minister of Finance/as well as by a representative of concerned professional assembly /nominated by the Head of Professional Union/ .

The decision of this committee is final and shall not be subject to appeal or revision.

Article/5/- when the breach note becomes final, the Minister of Finance has the right to close the shop or institution for a period of /7days to 3months/,when he finds out the conditions of the breach of the rules of this legislative decree is a kind of fee evasion.

Article /6/ A- In addition to the punishment and penalties stipulated in the previous articles/4&5/, the transgressor /whether seller(local manufacturer)or the investor and his joint companions /has to pay the due fees.

If there is an evidence on the hiding of the value of sales or services, or in case the information in the invoices or contracts aren't correct or contradict with the reality ,the transgressor has to pay the penalty amounting /2500/S.P or /10%/ of the value of above mentioned sales or service, whichever is higher .

          B-The value of sales and services shall be estimated by a committee headed by financial manager,among its members shall be either manager of economy and trade or manager of tourism in the governorate in which the shop, institution are located ,or a place where the work was achieved ,in addition to the representative of concerned professional assembly /nominated by the head of professional union/in the governorate.

Its decision shall be final and shall not be subject to appeal or revision

Article /7/ :The imposed Fees shall be paid in accordance with the provisions of this legislative decree ,if the shop or the invested institution is exempted of tax and fees according to the valid rules and regulations.

Article/8/:Fees stipulated in this legislative decree are paid and transferred to the account of the directorate of finance in the governorate in foreign currency ,in case the value of invoice or the contract is in foreign currency.

Article /9/ A- If the local manufacturer paid the consumption expenditure duty on the imported materials referred to in the items/1 to 30/in the table/2/ annexed to this legislative decree ,use in manufacturing local production ,the financial departments shall deduct what has been paid of the total due fee on his local sold production ,in accordance with his imported materials used in manufacturing the locally sold productions.

B –If the local manufacturer exports his goods /totally or partially/ abroad ,the financial departments shall refund the amounts of the consumption expenditure duty received on his imported materials of the customs items mentioned in the table No/2/annexed to the legislative decree/totally or partially/paid by him according to a certain percentage of his imported materials used in the production of the exported goods of his local products .

Article/10/:The provisions of collection law are applied to collect fees and penalties which are due to the provisions of this legislative decree.

Article/11/:The title ,of paragraph /6115/mentioned in the chapter/6/ the table of revenue of general budget ,shall be changed to be "consumption expenditure duty".

Article/12/ A-Financial departments have the right to charge their employee to control the fulfillment of the provisions of the legislative decree .The provisions of the articles /18&19/ of the law No./1/ issued in 18/1/1981 shall be applied to the actual breach notes.

B –Financial departments has the right to control and check  and take all necessary actions to avoid misusing to which may cause in all stages of production and distribution channels, when necessary.

Article/13/A- The law No./28/for 1986 which includes imposing fees on purchasing T.V sets shall be terminated .

B-The provisions of the articles/1to10/of the law No./144/in1955 ,which is amended in the law No./18/in1959 which include fee on wireless set, shall be terminated.

C-The provisions of the article/1/of the legislative decree No./103/in1940 ,which is amended in the decree No./10/dated 15/12/1951 which include fees system on cement , shall be terminated.

D-The provisions of the article/8/of the law No./114/dated19/12/1944 ,which is amended in the law No./13/in1971 and which includes the system of sugar monopoly, shall be terminated.

E-The provisions of the article/4/of the law No./80/in1939 which is amended in the legislative decree No./41/in1962 ,the legislative decree No./302/in 1969 and the decree No./1588/in 1970 which include the system of salt investment, shall be terminated.

F-The provisions of the article/2/of the law No./165/dated 8/5/1945 which is amended in the legislative decree No./164/in1965, the legislative decree No./56/in 1977, the legislative decree No./37/in 1977 and the law No./22/in 1993 and which includes the fees system of alcohol, shall be terminated.

G-Enactment decree No./89/dated21/9/1937 and its amendments which include fee of nightclubs, shall be terminated.

Article/14/ :The national defense additions,  which are imposed, according to the law No./383/ in1957,on the fee of following materials :

-     cement

-     sugar

-     alcohol

-     nightclubs

shall be terminated.

Article/15/: The additions of education buildings(fee of schools)which is imposed ,according to the law No./150/ in1958,on the fees of the following materials:

-                   cement

-                   alcoholic materials and drinks.

shall be terminated .

Article/16/:The law No./384/ dated28/4/1957 and its amendments ,which is about the system of agricultural production tax, shall be terminated.

Article/17/:Specific materials ,mentioned in the items/10, 14 , 24 & 26/ stipulated in the table of sales No./2/ annexed to this legislative decree, never be subject to the differences of prices ,and additions system which are imposed by provisions of legislative decree No./10/ in 1980,which include establishing a "price modification fund".

Article/18/:The law No./18/ in1987 and its amendments of consumption expenditure duty shall be terminated.

Article/19/:The minister of finance shall issue necessary executive instructions to execute the provisions of this legislative decree.

Article/20/:This legislative decree shall be published in the Official Gazette ,and come into force on the beginning of the next month to the date of its issuance.

Damascus 16/9/2004

The president

Bashar Al-Assad