Caretaker Prime Minister Najib Mikati presiding over a Cabinet meeting in July. (Credit NNA)
Concerns about a widespread conflict in the region have increased following the assassination of Hamas leader Ismail Haniyeh in Tehran and a senior Lebanese Hezbollah official, Fouad Shukur, in Beirut. The Cabinet meeting on Wednesday will focus on a report by Nasser Yassin, the caretaker Environment Minister and head of the emergency response unit. Yassin will outline the measures and provisions of the national emergency plan.
The conflict in South Lebanon between Hezbollah and Israel, which began on Oct. 8, 2023, after the onset of the Gaza war, will also be addressed, following a request from the Health Ministry. The ministry is seeking an amendment to Decree No. 12311 of Oct. 20, 2023, to extend coverage to the approximately 100,000 internally displaced persons from border areas. This amendment aims to include these displaced individuals in the coverage for injuries and health issues resulting from military operations at first aid centers contracted by the ministry.
Syrian refugees and Iraqi fuel oil
The Cabinet’s agenda, which includes 46 items, addresses a range of topics beyond just war-related issues.
The Cabinet will review a management plan for Syrian displaced persons in Lebanon and assess the directives that have already been implemented. Caretaker Displaced Persons Minister Issam Sharafeddine will be tasked with overseeing the voluntary return of displaced populations who have been in Lebanon since the start of the Syrian war in 2011.
When asked by L’OLJ about potential updates on this matter, Sharafeddine, a close associate of former MP Talal Arslane, advised waiting for Wednesday’s decisions.
It is worth noting that until now, this issue had not been officially assigned to Sharafeddine, despite his belief that it falls within his purview. He had even stopped attending Cabinet meetings in protest.
According to Lebanese authorities, Lebanon hosts approximately 1.5 million Syrian refugees.
Recently, a wave of discriminatory violence targeting Syrians in Lebanon has occurred — with many Syrian individuals reporting having been beaten, stopped at checkpoints or intimidated from leaving their homes. Numerous incidents between the two communities have been reported, leading to a strained relationship between them. Additionally, calls for their return to Syria have increased from both local communities and officials. Anti-Syrian rhetoric peaked, including the introduction of discriminatory ministerial and municipal policies targeting Syrian nationals in Lebanon — exacerbating their access to housing, transport and official documents. Over the past weeks, municipalities, particularly in northern Lebanon, have continued crackdowns on Syrian nationals evicting thousands from their homes, which officials claim they inhabited illegally. These actions were strongly denounced by Human Rights Watch.
Among the items added to the agenda is a critical request from the Energy and Water Ministry concerning the fuel needs of Electricité du Liban (EDL). The ministry is also seeking payment for part of the debt owed to Iraq for fuel supplied to Lebanon, as well as for anticipated future imports. Lebanon recently came close to a blackout due to EDL’s inability to import fuel for its power plants.
VAT Rate Adjustment?
The Cabinet will review several requests from the Finance Ministry, including a proposal to amend Decree No. 6493 of June 19, 2020, which outlines the application of the 2001 VAT law.
The Cabinet is unlikely to unilaterally adjust this rate, as the authority to do so rests with Parliament. The Finance Ministry did not respond to our inquiries about this matter.
Another key item is the review of draft decrees that would modify the "annual guarantee fees," which are contributions required by the National Deposit Guarantee Institution from banks operating in Lebanon for the years 2020 through 2023. A banking source, who wished to remain anonymous, said Lebanese banks have not paid these fees for several years, pending a decision from the Cabinet on the amount. Some banks are concerned that the state might demand payment in “fresh dollars.”
The institution currently guarantees deposits up to 75 million LL, equivalent to $837 at the current market rate.
Pension for Retired Military Personnel
Several agenda items address administrative or social issues.
The Interior and Environment Ministries are set to discuss the coverage of waste collection and treatment costs by the Autonomous Municipalities Fund. The waste management sector has faced significant difficulties since the crisis: Contractors working under state contracts report delays in payments or reductions in amounts due to currency devaluation, leading to occasional trash accumulation in the streets.
The longstanding system of funding through the Autonomous Municipalities Fund, which has been in place for decades, deprives municipalities of crucial resources that could be used for their development. The environment minister did not respond to requests for further details.
The Ministry of Economy will propose continuing subsidies for bread provided to low-income families benefiting from social assistance, following the end of the World Bank-funded emergency wheat supply project.
On the social front, the Cabinet will also consider a long-standing demand from retired military personnel, who have seen their pension drastically reduced since the crisis and regularly voice their dissatisfaction. The proposal includes providing a monthly flat-rate pension of around five million Lebanese liras (approximately $55).
Social affairs and education
The Social Affairs Ministry will seek an extension of the trial period for merging two social assistance programs: Emergency Social Safety Net (ESSN), created in 2021 to support households impacted by the crisis and COVID-19, and National Poverty Targeting Program (NPPT), established in 2011 to aid the most vulnerable households.
Education will also be addressed on the agenda, with a request from the Education Ministry to organize a catch-up session for official exams in the secondary education cycle across its four branches.