The Finance and Budget Committee held a session chaired by MP Ibrahim Kanaan to discuss amending the Income Tax Law, attended by Minister of Finance in the caretaker government, Youssef Khalil, and MPs: Alain Aoun, Jihad Al-Samad, Ali Hassan Khalil, Ayoub Hamid, Michel Moawad, Raji Saad, Jean Talouzian, Selim Aoun, Adnan Traboulsi, Amin Sherri, Fouad Makhzoumi, Farid Boustany, and Firas Hamdan. Also present were Acting Director General of Finance George Maaraoui and Director of Revenues at the Ministry of Finance Louay Al-Hajj Shahada.
Kanaan announced that the committee approved the law that allows for an extraordinary revaluation of inventory and fixed assets, modified before being subjected to income tax to address currency exchange rate differences, and referred it to the Speaker of the House. The approval aims to unify the tax rate for profits resulting from disposal and revaluation, as it was previously, especially since the distinction between the tax rate on profits from disposal and the tax rate on profits from revaluation is unwarranted.
Kanaan confirmed that "the law prevents the imposition of income tax on unrealized profits resulting from the collapse of the exchange rate. It falls within a series of exceptional measures that are unavoidable if we wish to maintain the productivity of the private sector and protect the legitimate economy." Contrary to the principles of science, law, and tax justice, the valuation of the assets of companies and commercial institutions that have survived in the country has been conducted according to accounting and tax rules that do not serve the revitalization of the private sector, leading it and its workers to undesirable outcomes. This comes amid a stifling paralysis overshadowing both the political and economic situations, not to mention the daily threats emanating from the southern borders, which jeopardize all gains achieved in terms of growth and currency.
It is noteworthy that during the General Assembly's discussion in the House of Representatives regarding the 2024 budget, the clause related to income tax was suspended, allowing taxpayers to carry out an extraordinary revaluation of their inventory and fixed assets until the end of the session, but this clause was not revisited "by oversight." The caretaker government reintroduced it in a draft law and sent it to the House, with some amendments added. Meanwhile, MP Ni'mah Afraam proposed a corresponding suggestion on the same matter.
The significance of approving the amended law lies in addressing the effects of inflation, preventing tax burdens on taxpayers arising from price fluctuations, preserving the capital of these taxpayers, and aligning with international standards regarding inflation.
