Economy minister: We will not allow taxes to be exploited to raise prices
2/23/2026 12:08:00 PM
Government decisions to impose a 300,000 LBP levy on gasoline and raise VAT by 1 percent to finance six additional salaries for public sector and military personnel have sparked protests, amid warnings of rising prices and declining purchasing power.
Economy Minister Amer Bisat said there is broad national consensus on the need to raise public sector wages, particularly for the military, whose sacrifices far outweigh their pay. He noted the salary increases will cost the state $800 million, stressing that boosting spending without securing revenues would fuel inflation and pressure the Lebanese pound.
Bisat said the government first sought to improve tax collection and combat evasion but deemed these measures insufficient, prompting the fuel tax and VAT increase. He maintained that price hikes would not be as severe as feared and pledged strict monitoring to prevent profiteering.
The ministry has intensified inspections, issuing fewer than 100 violations in 1,500 checks this year, and secured commitments from supermarkets and importers to maintain current prices. Bisat described the measures as morally necessary while affirming efforts to prevent unjustified inflation.
Economy Minister Amer Bisat said there is broad national consensus on the need to raise public sector wages, particularly for the military, whose sacrifices far outweigh their pay. He noted the salary increases will cost the state $800 million, stressing that boosting spending without securing revenues would fuel inflation and pressure the Lebanese pound.
Bisat said the government first sought to improve tax collection and combat evasion but deemed these measures insufficient, prompting the fuel tax and VAT increase. He maintained that price hikes would not be as severe as feared and pledged strict monitoring to prevent profiteering.
The ministry has intensified inspections, issuing fewer than 100 violations in 1,500 checks this year, and secured commitments from supermarkets and importers to maintain current prices. Bisat described the measures as morally necessary while affirming efforts to prevent unjustified inflation.