Economic Committee Discusses Tax Trends in Budget with Private Sector

The National Economy, Industry, Trade, and Planning Parliamentary Committee held a session today, Wednesday, at the parliament chaired by MP Farid Bustani, in the presence of member MPs. After the session, MP Bustani stated: "The Economic Committee met and focused on the budget and the tax trends therein. There is an interconnection between us and the Finance Committee. We hosted the President of the Economic Associations, Mohammad Choucair, and the President of the Lebanese Businessmen’s Association, Niqula Bou Khatir, since this budget is tax-oriented and involves the private sector. There is a consensus in the committee, and through the proposal put forward by Mr. Bou Khatir, that we do not want a budget to be issued by the government through a decree." He added: "There was a focus on the necessity of the recovery of the banking sector, and the reduction of public debt, and we reject the issuance of the budget through a decree. We must study revenues scientifically. Regarding the issue of tax increases and VAT, we need an economic vision; the Finance Ministry tends to provide figures instead of policies, as whenever we need revenues, we increase taxes. We cannot create an economic vision like that of the government. I indicate that there is a lack of state involvement, and the private sector is 'self-regulating'; we will have a subcommittee to discuss various economic topics." Bustani further stated: "What I want to emphasize is that the public sector is an integral part of state revenues. We listened yesterday to the esteemed governor and I encourage him to continue with the reform steps for the public sector to carry out its duties, and I also encourage the opening of real estate offices as we need them urgently. The public sector and real estate offices are a necessity." For his part, MP Waddah Al-Sadek said: "We should not fall into the trap of issuing the budget by decree. Approving it as it is will destroy the private sector. As opposition MPs, we will begin to study it; what the government has done is raise taxes to pay the salaries of the public sector without taking any steps. The only solution to tax evasion and customs evasion is to cancel taxes for a certain period and the VAT."