
by Nada Atallah — thenationalnews.com – Lebanon plans to drastically raise taxes to boost the cash-strapped state’s revenues, but experts fear that the Lebanese will not be able to pay the new rates after three years of economic collapse, which pushed more than three quarters of the population into poverty. Lebanon’s public revenue fell by half in 2021 as the country grappled with a financial meltdown described as one of the world’s worst economic crises. The government currently generates taxes at the old pegged exchange rate, but Lebanon’s 2022 budget published on Tuesday introduced a new “effective rate” for taxes on salaries earned in dollars. Finance Minister Youssef Khalil confirmed to The National on Monday that the new rate for taxes will be set according to Sayrafa, the official exchange rate platform managed by the Central Bank, where the Lebanese pound is trading at about 30,000 to the dollar.
This is about 20 times higher than the current official rate. The local currency’s official rate had been set at 1,507 per dollar since 1997, before unravelling after the economic crisis unfolded in 2019. “This is a skyrocketing increase. The budget includes a 25 per cent tax for annual incomes above 675 million Lebanese pounds, which is only $16,875 per year”, tax lawyer Karim Daher said. The new rate for tax collection will be implemented once the Ministry of Finance and Central Bank issue a decree. Lebanon to raise exchange rate for taxes, fees and customs duties Legislators included higher tax brackets in the budget to alleviate the financial effect on taxpayers. But experts fear the adjustment is not enough for an impoverished population grappling with one of the highest inflation rates in the world.













