Syria’s tax hike hits Turkish exports
An independence-era Syrian flag hangs at a market in the central city of Homs on Jan. 4, 2025. (AFP Photo)
A recent decision by Syria’s temporary government to standardize customs duties across all border gates has led to a dramatic increase in taxes on products exported from Türkiye, causing exports to nearly grind to a halt.
The tax on Turkish goods has risen by up to 300%, leaving exporters and importers in a difficult position.
New customs tariffs: A severe blow to Turkish exports
On Jan. 11, the Syrian government announced the unification of customs duties across all border crossings, which has significantly impacted trade with Türkiye.
Before this decision, different regions of Syria applied varying customs duties, with the Assad regime imposing high taxes on goods coming from Jordan, Iraq, and Lebanon, while the border controlled by the opposition, Bab al-Hawa, had much lower taxes.
Under the new system, customs duties on goods from Türkiye have surged, leading to a sharp increase in costs.
In some cases, tariffs on goods from Türkiye have risen by as much as 300%. This has caused a dramatic reduction in trade, particularly affecting sectors such as grains, legumes, oilseeds and other food products, which are key exports from Türkiye to Syria.
Impact on both exporters and importers
The new tariffs have caused major disruptions for both Turkish exporters and Syrian importers. Celal Kadooglu, president of the Southeastern Anatolia Grain, Legumes, Oilseeds and Products Exporters’ Association, warned that the increase in customs duties has brought Türkiye’s exports to Syria to a near standstill. He stressed the need for both diplomatic and commercial solutions to the crisis.
“Exports to Syria, which averaged $30 million per month in 2024, have virtually stopped. The long queues of trucks at the border are a clear sign of this disruption,” Kadooglu stated, adding that the high tariffs are also leading to significant inflation in Syria, which will erode the purchasing power of Syrian consumers.
Fikret Kileci, coordinator of the Southeastern Anatolia Exporters’ Unions, noted that the situation is being closely monitored by the Turkish government.
“Exports are currently halted, and we are working to resolve the issue.”
Kileci expressed optimism that the decision would be reconsidered, leading to a more reasonable tax level that would allow trade to resume without further harm to Turkish exports.
