New 3% Tax in Draft Budget: Advance Payment Required

The New 3% Tax in the 2026 Budget: A Look at the Ongoing Debate and its Potential Impacts on the Lebanese Economy.

In the draft budget for 2026, the new 3% tax stands out as a controversial item, as it is paid in advance to the state. The basic idea is to impose an advance payment on income tax, profits tax, and even value-added tax, and it is deducted through customs departments or public bodies that provide services, with the aim of improving collection and increasing state revenues.

However, this new tax raises concerns about rising prices, the potential for exacerbating the economic recession, and weakening the confidence of the private sector. Past experiences with tax increases have not proven effective in increasing state revenues, but have stimulated the black and parallel economy and increased tax evasion, which harms committed companies and citizens.

After negotiations and pressure from the private sector, it was agreed that this tax would be imposed on companies and citizens who have not declared income tax in the last three years.

According to forecasts, this additional tax is expected to increase state revenues by about $600 million, but economic experts doubt this figure, and suggest that actual revenues may not exceed $150 million.

In conclusion, the 3% tax in the 2026 budget is considered one of the most controversial items, as the government sees it as a tool for financial and tax reform, while the private sector and citizens consider it a new burden that increases the severity of the current crisis. Instead of increasing taxes, some believe that the solution lies in increasing collection and achieving justice and transparency on all Lebanese territory.