Since the discussion about raising the value of the customs dollar has re-emerged in government circles, anxiety has gripped most Lebanese, whose purchasing power has diminished due to worsening and escalating crises. It is known that this measure is unavoidable to secure state revenues that would allow for raising employee salaries without impacting the state treasury and simultaneously preventing inflation. This means that such a step should be carefully implemented and not done haphazardly.
There is no specific figure yet for the anticipated customs dollar value, but according to statements from the Minister of Economy and Trade, Amin Salam, the expectation is that the price will be 20,000 Lebanese pounds per dollar. He assured during a press conference that food prices would not be affected since they are exempt, though Salam acknowledges that "man does not live by bread alone."
Purchasing power will undoubtedly be affected with the increase of the customs dollar, despite the exemptions that will not include luxury items and will be limited to food products only. How will this affect the purchasing power of citizens whose salaries have not increased proportionally with the rising exchange rates on the black market?
Economic and Social Council member Anis Bou Diyab pointed out that "600 goods are expected to be exempt from the customs dollar increase, all of which are food items. A final list is supposed to be issued in the next couple of days, and such lists must be disseminated to ensure transparency and avoid any fraud or exploitation by raising prices of goods exempt from the new dollar rate."
In a talk with the electronic newspaper "Al-Anbaa," Bou Diyab expressed that "the purchasing power of citizens will be significantly affected and will further decline for low-income individuals. The economy is expected to face a phase of recession with decreased demand for luxury goods and secondary items."
Regarding the expected salary to be received with the increase in this dollar value, Bou Diyab noted that "no study specifies precise figures, but a family of four needs to secure an income of 20 million Lebanese pounds monthly to survive and cover basic needs (if the black market dollar remains unchanged). We, in the indicator committee, are trying as much as possible to push towards raising salaries and the minimum wage, but it is not expected that public and private institutions will raise salaries to the level of 20 million, and that is a given."
In the context of conflicting powers between the Parliament and the Cabinet regarding the decision to raise the customs dollar value, Bou Diyab mentioned that "the procedure is purely monetary and not financial; the value of the dollar changes, not the tax and customs policies in general. Therefore, the Ministry of Finance can raise the customs dollar without needing a law from Parliament."
In conclusion, Bou Diyab emphasized the necessity to "intensify the monitoring work of the Ministry of Economy and municipalities in the coming period, as some traders will exploit the rise in the customs dollar to raise the prices of existing goods to gain profits. Many of them had imported large quantities of goods that will be affected by the dollar hike in advance and filled their warehouses, intending to sell them at exorbitant prices after the decision is announced." He also warned of unlawful competition and customs evasion due to the "loose and chaotic borders."
Thus, the increase in the customs dollar must be accompanied by measures that lead to adjusting the salaries of the public and private sectors to avoid marginalizing new groups of Lebanese citizens.
