Taxes are burdening Lebanese citizens
Lebanon, Essay, 9/29/1997

The Lebanese government is facing a social environment that could explode at any moment due to deteriorating living conditions and the continuation of the reconstruction plan amidst high debts.

Lebanon needs $1 billion during the remaining period of the current year to finance the sectors of agriculture, industry, for the development of some areas that were not on the reconstruction and development plan before as the government was concentrating on the capital Beirut.

The government finds great difficulties in borrowing the required money, not because the international financial institutions refuse to offer loans, but because Lebanon's debts reached $13 billion, which make it difficult for Lebanon to add new debts before specifying the way to pay them back.

The government decided that the solution is to impose new taxes on the people in order to provide the money especially in the petroleum field. This proposal was faced with great objections on the official and unofficial levels as the Lebanese citizen is burdened with many taxes without getting good services especially on the medical, educational and economic fields. Lebanon is currently considered one of the most expensive Arab countries.

Some suggested that the government should impose high taxes on the maritime companies as the owners of these companies are able to pay high taxes and as these companies are not subjected to any taxes despite the great profits they achieve. But this suggestion was ruled out because the owners of the maritime companies are very important people in the country who occupy leading positions. Thus the government has no other alternative but to raise the taxes imposed on the imported cigarettes in order to provide between $2 to $3 million each year.

The second solution that the government chose was to entrust the Ministry of Oil with importing oil from abroad after the government found out that the private sector companies get high profits out of this trade.

Soon the Lebanese government will face a dilemma as it will have to work amid the budget deficit , high rate of inflation in addition to its inability to impose taxes.

Previous Stories:
  Trouble amidst the government due to failed passage of economic plan   (9/27/1997)
  Economic plan to include more taxes on cell phones and real estate   (9/24/1997)
  The meeting of the central banks governor's council   (9/11/1997)

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