The Consumer Association – Lebanon issued a scathing statement in which it expressed its strong dissatisfaction with the recent government decisions that required an increase in the tax on gasoline by 300,000 liras, and an increase in the value-added tax to 12%. The association believed that these measures reflect an insistence on the “failed policies” that led to the collapse that Lebanon witnessed in 2019.
The association accused the government of completely ignoring the concept of social justice, and stressed that the Lebanese consumer currently bears 80% of the total tax burden, while the direct taxes imposed on corporate profits “do not actually reach 7%.”
The association explained that the authorities are trying to hide the real numbers of indirect taxes by giving them different names, such as fees imposed on electricity, communications, and administrative transactions, in light of “dollarized” inflation that exceeded 56% in just two years.
The statement warned that the new tax on gasoline would impose additional burdens on taxi drivers exceeding $160 per month, which could lead to a wave of monopolies and massive price increases.
The association questioned the government’s “achievements” a year after its formation, and criticized its inability to provide the necessary basic services, such as electricity, water, and education, while it excelled in “blaming its failure on the poorest groups” instead of combating tax evasion practiced by companies and restoring marine public property.
At the conclusion of its statement, the association warned that this tax project contributes to the impoverishment of the people and pushes young people towards migration and despair, and demanded the enactment of a fair law aimed at returning bank deposits to their owners instead of seeking to “swallow what remains of them.” The association issued a clear warning to the government of the need to correct course immediately or else leave.
