Hundreds demonstrate against Lebanon's proposed tax hikes

Hundreds demonstrate against Lebanon's proposed tax hikes
Protesters gathered outside parliament in Beirut on Thursday to denounce what they considered unwarranted tax increases passed by the Lebanese government on Wednesday.
2 min read
17 March, 2017
Protesters assembled outside parliament in Beirut on Thursday [AFP]
Hundreds of protesters gathered outside parliament in Beirut on Thursday to demonstrate against a new bill to increase taxes in Lebanon.

Protesters assembled in Riad al-Solh square to denounce what they considered unwarranted tax increase, calling for an end to government inefficiency and the misuse of public funds.

Demonstrations were also held in the northern city of Tripoli and the southern port city of Sidon, where hundreds rallied outside the council buildings.

On Wednesday, lawmakers approved a series of tax bills, including a one percent increase in VAT, which previously stood at 10 percent.

The increase will fund a salary hike offered to public sector workers, including teachers, and new salary packages, the government says.

Former MP Khaled Daher told The New Arab the budget requires finding an extra 1.2 trillion Lebanese pounds ($800 million) to cover the rise across all the public sectors.

Daher, who has been dismissed from his post by the Future Movement party in 2015, urged the government to focus instead of tax hikes on the "immediate stop to corruption", which he said was enough to fill for the required budget.

Activists decried the decision, saying it was disproportionate to the average income of people in the country.

People took to Twitter to voice their outrage, and the hashtags #How_the_MP_is_a_thief and #The_Parliament quickly started trending.

[Translation: This is what happens when people re-elect a thieving MP instead of putting him in prison.]

VAT increase could hit thousands of Lebanese from the middle class and households living just above poverty line, according to a 2009 UNDO report.

Other proposals include increasing taxes on alcholic drinks, air fares and real estate transactions.

More protests are scheduled in Lebanon over the weekend.