Lebanon

Warning to the Minister of Finance: Revoke the New Customs Dollar Rate Immediately!

Warning to the Minister of Finance: Revoke the New Customs Dollar Rate Immediately!

MP Firas Hamdan issued a warning through a notary to the Minister of Finance in the caretaker government, Youssef Khalil, demanding the immediate retraction of his letter dated 28/2/2023 addressed to the Prime Minister, which includes imposing taxes on citizens not approved by law. This was in reference to the decision to calculate the customs dollar based on 45,000 L.L. Hamdan requested that Khalil "circulate to the customs departments to stop working on any decision, decree, or directive in this regard that has not been approved by the Parliament, whether issued by you or by the Prime Minister," warning that "if you fail to comply, we will regrettably have to refer the case to the competent criminal judiciary to seek penalties against you and anyone who participated with you in enacting illegal taxes."

He added: "We warn you to work on completing the accounts for previous years in implementation of the Constitutional Council's decision," holding both him and the government with which he is personally involved responsible for civil and criminal liabilities.

In his warning, Hamdan stated the following considerations:

"1- I referred on 1/3/2023 to your letter dated 28/2/2023 addressed to the Prime Minister, which included 'raising the monthly averages of foreign currency prices to be adopted in calculating taxes on imported goods and commodities from 15,000 L.L. to 45,000 L.L. to secure the necessary funding for the awards and increases approved in the Cabinet session that will be later approved, hoping for your approval in this regard.' 2- The ink on the budget approval and your report submitted to the Parliament, which stated: 'As for the exceptional revenues, they were estimated at about 10,262.60 billion L.L. this year, after it was estimated at 5,351.7 billion L.L. in the 2021 budget, an increase of about 4,910.90 billion L.L. This is due to the fact that despite the public expenditures being estimated at about 30,639 billion, some measures taken in the revenue side have somewhat covered this increase, including the estimated impact of the adjustment in calculating the customs tariff as well as taxes and fees in relation to the assumed exchange rate (20,000 L.L. per dollar).' Yet you surprise us by requesting to adjust the tax calculation on imported goods from 15,000 to 45,000 Lebanese Lira, ignoring that the Parliament, in approving the budget, relied on 15,000 L.L. for tax calculations on imported goods, which means that you: 1- Contradict the provisions of Article 81 of the Constitution and the Public Accounting Law, as you described the increase as a tax increase, which is prohibited for you and others except by law. 2- Violate what the Parliament approved in the budget, which rejected your proposal to use 20,000 L.L. per dollar for tax calculations on imported goods and rejected your suggestion. 3- As the Minister of Finance, you have not prepared the accounts for previous years to date, although the Constitutional Council previously obligated you and the government as a whole to do so, and violating the Constitutional Council's decision is tantamount to a violation of the Constitution. There is no need to remind you that the accounts provide a clear picture of the state's finances, and the refusal to prepare them constitutes a legal violation that can no longer pass without punishment."

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