Lebanon: New Tax Measures to Fund Public Sector Pay Rise Drafted
Type
E-journal
Date
2 Oct 2012
Jurisdiction
Lebanon
Taxonomy
Supply of Services, Telecommunications, General Tax Law, General Leisure & Licensing
Copyright
LexisNexis
Analysis
On the 18 September 2012, Lebanon's Cabinet approved tax measures to help fund the public sector pay rise.
A 1,000 Lebanese Lira tax on every landline and cell phone bill will be imposed.
Taxes on lottery winners will be increased from 10% to 15%.
These are additional measures to the tax on illegal properties which were built along the coast during the Civil War.
The Finance Ministry, headed by the Finance Minister, Mohammad Safadi, is currently drafting the law.
Some critics were formulated with regards the ability of the incomes drained by the new levies to cover the increase of salary scale which is expected to cost about $1 billion per year.
The Cabinet rejected other proposals to increase VAT rate from 10 to 12% and increase taxes on deposit interest from 5% to 7%.