Fouad Zmokhol head of MIDEL. (Credit:DR)
BEIRUT — The International Confederation of Lebanese Businesspeople (MIDEL) stated Monday that any increase in taxes or restrictions on "fresh" cash will lead to an exit of the country's remaining investors.
"Fresh" cash is an expression used in Lebanon to designate hard currency that is not subject to any banking restrictions.
MIDEL, headed by Fouad Zmokhol, announced after a meeting of its board of directors, that "there are people who are aiming to destroy what remains of the country's economy" and "lead the country to chaos and social explosion."
"MIDEL denounces and rejects any increase in taxes before comprehensive reform," Zmokhol said during a meeting of the MIDEL's board of directors.
He cautioned that increased taxes would force remaining investors, entrepreneurs and innovators to exit the country, leading to an increase in smuggling and money laundering.
A financial crime watchdog this year warned Lebanon could be placed on a grey list under special scrutiny over unsatisfactory practices to prevent money laundering and terrorism financing unless it enacted reforms.
"The capital control law must not impose any restrictions on fresh cash ... because any decision in this regard will end the free economy and what remains of foreign investments," said MIDEL's board of directors, according to a joint statement issued after the meeting.
They expressed their support for Lebanon's acting Banque du Liban (BDL) Governor Wassim Manssouri to stop state borrowing and prevent spending of BDL's remaining reserves.
During a press conference last month, Mansouri said BDL would not print money to lend to the state or cover the crisis-hit economy's projected deficit.