On Wednesday, July 1, the Ministry of Finance issued the updated executive instructions for the Consumer Expenditure Decree No. 11 of 2015, as amended by Law No. 15 of 2024. In an official statement, it stressed that the update does not include the imposition of any new tax or fee and does not add financial burdens on citizens or taxpayers, but rather aims to unify procedures and enhance transparency within the tax system.
The Ministry explained that the update of the instructions comes within the path of developing the tax administration, ensuring the clarity of rights and obligations, and achieving fairness of application between the local product and the importer, in a way that enhances economic competition and protects the rights of the public treasury, in addition to removing the ambiguities that used to appear in the interpretation and application of laws, and unifying the work mechanisms between the concerned authorities.
According to the new instructions, the rules governing the application of the consumer expenditure fee on goods and services subject to it, and the mechanisms for collecting and paying it, in addition to regulating the obligations of producers, importers and taxpayers, and the procedures of invoicing, tax declaration and control, have been determined, in accordance with the provisions of the decree and its amendments.
The instructions included the tables of goods and services subject to the fee and its percentages, as well as the provisions related to exemptions and special cases, in order to ensure the uniformity of application in the stages of production, import, and trade.
The instructions stipulated the cancellation of all previous instructions and decisions related to the implementation of the Consumer Expenditure Decree, and the adoption of the updated instructions as the sole official reference for the implementation of the provisions of the amended law.
The Ministry of Finance called on taxpayers to review the new instructions and take advantage of the available communication channels to request clarifications, stressing that the goal is to provide a clear and stable tax environment that supports economic activity and investment.
10% on 4 & 5 star properties
The instructions clarified that the consumer expenditure fee is added directly to the bill according to percentages that vary according to the nature of the service and the classification of the establishment, in order to ensure the unification of the application and the achievement of tax justice among the various economic actors. A 10% rate was imposed on services provided in four- and five-star tourist establishments, compared to 5% in two- and three-star establishments, and includes all services included in the customer's bill such as electronic games, saunas, bathrooms, telephones, and lease or investment contracts.
20% on amusement parks and nightclubs
Nightclubs and nightclubs are subject to a higher rate of 20% on all services provided under the tourism license. The instructions also stipulated a 5% levy on the services of electric game parks, with investors obliged to use serial tickets or magnetic cards and record revenues daily, in addition to a 3% fee for telephone calls and 2% on fixed calls.
The instructions subject the rental of tourist cars to a consumption expenditure fee of 5% upon signing the contract, whether licensed or unlicensed, with the fee recalculated when amending the contract or replacing the car.
5% on airfare
In wedding halls, a 5% fee is charged for parties and weddings, while funeral ceremonies are exempt, with all accompanying services included in the bill or independent receipts. The instructions also included imposing a 5% fee on restaurants and tea halls classified as tourists, in addition to a 3.65% fee on all travel tickets sold inside Syria, whether the trip is domestic or international, with the organization of refund mechanisms and accountability in cases of cancellation or price adjustment.
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