The TVA headquarters in the Palais de Justice area, Beirut. (Credit: P.H.B./L'Orient-Le Jour)
-The Constitutional Council decided to suspend the application of Articles 36, 45, 72, 92 and 93 of the 2024 budget law, after the Lebanese Forces (LF) filed a challenge to invalidate these articles four days earlier with the council. The decision will result in a partial suspension of the implementation of the 2024 budget law.
As a reminder:
-Article 36: provides for an increase in municipal taxes based on a rise in the rental value assessment of built properties.
-Article 45: provides for the imposition of a fine on those who breach the principle of free access to public beaches, by erecting barriers to obstruct passageways for instance.
-Article 72: requires the payment of a fine in foreign currency in the event of false declarations or late payment of taxes payable in foreign currency.
-Article 93: imposes a 17 percent tax on profits exceeding $15,000 when trading on BDL’s Sayrafa platform.
-Around 3,000 civil servants "turned off their computers and went home" Thursday upon hearing that Lebanese caretaker Prime Minister Najib Mikati had decided to freeze productivity bonuses.
The temporary bonus would have been equivalent to 20 percent of the civil servants' salaries and would not have affected pensions. Those currently receiving the payments will continue receiving them for the next two months, but a decision from the Council of Ministers will determine whether payments will be authorized for the following months.
The strike comes in tandem with protests held by dozens of Lebanese Army veterans and actions taken by several other public sector workers demanding salary increases to offset crippling inflation and ensure fair wages
-The price of fuel in Lebanese Lira has been on the rise, by almost 9 percent, since Jan. 19. According to our calculations based on the various price tables published by the Ministry of Energy and Water during this time period, the price of 20 liters of fuel has risen by more than LL 130,000 in a month which, if converted at the market rate of LL 89,500 to $1, is an increase in around $1.50.
The price of diesel, which had followed a similar trajectory, fell slightly whether in LL or dollars, while the price of gas cylinders remained stable.
Here are the latest prices:
-Inflation in January has been rather tamed. At a monthly rate of +2.87 percent at the end of January, the consumer price index (CPI) published by the Central Administration of Statistics (ACS) showed a more significant rise than December (+0.02 percent), but remains rather moderate.
On an annual basis, the CPI rose by 177.25 percent, well below the 192.3 percent posted at the end of December, as well as the average inflation rate for 2023 (222.42 percent).
-The Association of Automobile Importers in Lebanon (AIA) has welcomed, in a press release, the continued existence of tax benefits for imported electric cars in the 2024 budget that have been in place since 2018.
More specifically, these benefits include substantial reductions and exemptions on customs duties and registration fees on imports of electric cars, motorcycles and bicycles. Hybrid vehicles will also benefit from them.
-Najib Mikati's outgoing government postponed the Council of Ministers meeting scheduled for Friday, during which they were to examine the issue of productivity bonuses granted to certain civil servants and tackle the issues of bank restructuring as well as the distribution of the country's financial losses.
Officially, the meeting was canceled because all access to the Grand Serail, headquarters of the Council Presidency, was blocked by angry military retirees.
Nagib Mikati has not yet set a date for a new session.
