The economic bodies, headed by former Minister Mohamed Choucair, met with the Minister of Finance, Yassine Jaber, and the Minister of Economy and Trade, Amer Al-Bassat, at the headquarters of the Beirut and Mount Lebanon Chamber, in the presence of the bodies’ members. The meeting lasted more than two hours and dealt with various economic and financial issues, including the proposed new taxes to finance the increase in public sector salaries, the draft financial gap law, in addition to the problem of end-of-service compensation settlements in the National Social Security Fund.
Economic bodies issued a statement following the meeting expressing their concern about the potential negative effects of the recent tax increases, both in terms of higher inflation rates and social impacts, and stressed the importance of any new tax burdens being part of a long-term economic and financial vision.
The statement indicated that Ministers Jaber and Al-Bassat expressed their understanding of these concerns, but they stressed that the approved tax package is the most appropriate in the current situation, and explained that studies indicate that its inflationary impact will be limited, and that its economic and social repercussions will be minor, especially since gasoline prices were higher in the past. They stressed the importance of maintaining financial stability by ensuring revenues before approving any expenditures, as this is a prerequisite for restoring confidence and avoiding a new crisis.
The bodies also expressed concern about some provisions of the Financial Gap Bill, particularly regarding its potential impact on deposit recovery and damage to the banking sector.
In this context, Minister Jaber explained that the current stage represents a break from the stalemate that lasted six years, and he stated: “Today, for the first time, we have a draft law, and this is the most important. The proposed draft is not necessarily the best, but it constitutes the basis for a solution and is subject to discussion and amendment in the House of Representatives.”
For his part, Minister Al-Bassat stated that the continuation of the status quo would have increased losses for all parties, including the state, banks, the private sector, and depositors, and indicated that the government is working to implement many reform measures whose results will gradually appear on the economic and social levels.
At the end of the meeting, it was agreed to continue communication and cooperation between the two parties on issues of common interest.
