Economic organizations have contested the 2023 draft budget, as they believe that it burdens the Lebanese with new taxes and duties without proposing any reforms.
In a statement issued at the end of their meeting on Thursday, these economic organizations declared that through this draft budget, “the State is attempting to collect the largest amount of taxes to cover the largest possible percentage of expenditure.”
For them, “this type of budget, which only aims to cover the growing expenses of the State by increasing taxes and fees on citizens and the private sector, is mainly responsible for the financial collapse. Today, Lebanon needs a finance law that reflects a reform policy with an economic and social vision and that also encourages investment.”
The organizations warned against maintaining the formula being studied by the government “because it will inevitably lead to undermining all the gains made over the past year, and it threatens a near-total economic collapse.”
They also criticized “unusual threatening language aimed at taxpayers in arrears with their tax payments.” The latter are liable to be brought before the financial court on charges of tax evasion.
With this in mind, the economic organizations announced that they have prepared a document detailing their observations and suggestions on the 2023 draft budget which they’d submit to the relevant officials.
With regard to the Banque du Liban, the organizations welcomed the transfer of power from the Governor of the Banque du Liban Riad Salamé to the First Deputy Governor Wissam Mansouri “in order to ensure the continuity of this public institution.”
However, they expressed reservations about the plan to have transactions on the market be carried out in Lebanese pounds, which the four Vice-Governors wish to impose. They claim that these “would lead to heavy losses for consumers, traders, and business owners.” They also objected to the significant increase in taxes imposed on taxpayers, believing that the state would do better to increase its revenues by pursuing illegal institutions and collecting taxes and fees from them.
