Prime Minister Nawaf Salam held a press conference this evening, Friday, at the Grand Grand Serail, devoting it to talking about the financial increase recently approved by the Council of Ministers on gasoline and value-added tax (“TVA”) with the aim of financing increases in public sector salaries.
At the beginning of his statement, Salam explained that “increases in public sector salaries cost $800 million annually,” stressing that “the demands of the military, the public sector, and retirees are justified,” and stressed that “when forming the government, we made a decision not to undertake any spending before securing funding sources for it so that the state does not fall into a spiral of deficit and debt and so that we do not return to printing the lira and thus the collapse of the exchange rate.”
He added: “It was our duty to secure sources to finance the increases, and some proposed this by rationalizing the public sector, confronting tax evasion, and other matters. What became clear to us is that securing financing only comes through the difficult decision that we made regarding the added value and the price of gasoline.”
Salam announced that the increase in the “TVA” will not include basic foodstuffs, medicines, and other necessities, noting that “consumer protection inspectors have begun intensifying their tours of bakeries, and all violators will be referred to the judiciary.” He added, “We know that there is a defect in the tax system and this matter needs to be corrected. However, we are working on developing a comprehensive financial policy based on reforming the tax system, rationalizing spending, and restructuring debt in an integrated strategy for years ahead.”
Salam stressed that the measures taken by the government are “exceptional” measures to secure funding for increases in the public sector, which includes 323,000 employees, including 119,000 in the army and military corps. He stressed that the government will need to increase the number of military personnel, not reduce it, because the responsibilities are great, whether regarding the exclusivity of weapons, controlling security at home, or deployment at the borders, and other tasks.
He continued: “We have 50,000 employees in the educational sector, and we cannot dismiss any of them. Also, we have 120,000 retirees, and these have served the state in the most difficult circumstances and deserve to live a decent life.”
Salam pointed out that “the state operates with 7,169 employees at the present time,” adding: “We have established a special ministerial committee to study the required reforms in the public sector and you will see the result soon. However, we have not evaded the fight against tax evasion and we are working to improve collection. We have increased the state’s revenues from taxes and fee collection from $3.89 billion in 2024 to $6 billion in 2025.”
Salam also mentioned that “customs collections increased in 2025,” noting that “the state worked to control the land borders, the airport, and the ports, and detection devices were activated at all border crossings.” He added: “We have referred more than 100 companies to the Financial Public Prosecution on charges of money laundering and deliberate tax evasion, and I advise all companies to settle their affairs, otherwise they will be referred to the competent judiciary.”
Salam stressed that “the government is working greatly to improve customs collection and combat tax evasion,” saying: “We are reconsidering estimating the value of real estate and adjusting the value of the fees imposed on it to double revenues. The Ministry of Public Works is completing a survey of all marine properties from the Great River to Naqoura, and is gradually issuing collection orders for fees and fines on marine properties.”
He continued: “I tell the trespassers on marine property to pay directly what you owe after the collection orders are issued, otherwise you will be prosecuted before the court.”
Salam pointed out that the government had issued collection orders to the owners of quarries and crushers worth more than a billion dollars, and said: “We advise the owners of quarries and crushers to settle their situations, otherwise we will pursue them before the courts.”
He continued: “Salam: If you find any financial alternative to collect revenues from public sector increases today, then I will be ready to review the decisions taken. I also say that there is no state without administration, no state without an army, and no education without professors, and they all deserve our work to secure and increase their salaries.”
Salam concluded by stressing that “the situation of the judiciary is improving and must continue to do so,” declaring that “criminal scrutiny will be in all ministries, especially those that are tainted by suspicions.”
