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2025 BUDGET

Lebanese industrialists urge authorities to remove taxes that 'hamper local production'


Lebanese industrialists urge authorities to remove taxes that 'hamper local production'

Logo of the Association of Lebanese Industrialists

The Association of Lebanese Industrialists (ALI), led by Salim Zeeny, expressed regret in a statement over the government's adoption by decree of the 2025 budget on Thursday, without the text going through Parliament. Lebanese Prime Minister Nawaf Salam and several members of his team justified this procedure due to a lack of time, committing to prepare a draft law concerning the taxes outlined in the previous government's text, and to work on a genuinely "reformative" 2026 budget.

"The text [of the 2025 budget law] was not distributed to MPs and was discussed neither in the Parliamentary Finance and Budget Commission or the General Assembly. This is unacceptable, as the budget includes taxes and levies whose approval is the sole prerogative of Parliament," the institution denounced.

The Association of Lebanese Industrialists is urging the government to reconsider its proposed tax measures, warning that they could harm the local industrial sector. While the government has pledged to revive economic activity, the association argues that certain taxes would have the opposite effect.

One key concern is the decision to impose taxes on locally produced alcoholic beverages, which the association calls “scandalous.” It argues that the measure targets a “promising” sector of Lebanese industry. “This government decree comes at a time when several traditionally conservative countries are easing restrictions on alcohol consumption, prompting us to question whether the objective is to change Lebanon’s identity,” the statement reads. The association also criticizes the fact that the excise duty on imported alcoholic beverages is lower than that imposed on local drinks.

The association further denounces the 7 percent excise duty on non-alcoholic sweetened beverages, warning that it would favor imports from Arab countries at the expense of domestic production. “The Lebanese market will be flooded with foreign products, and local factories risk shutting down,” the statement warns.

In response, the association calls on the ministers of finance, industry, economy, and trade to intervene immediately to stop what it describes as a “massacre against the national economy and industry.” It urges the government not to impose new taxes without thoroughly studying their feasibility and economic impact, arguing that such measures could reduce consumption and, in turn, VAT revenues. “The results would be the opposite of what is expected. Instead of generating revenue for the treasury, these policies risk forcing Lebanese businesses to shut down or relocate to neighboring countries,” the association warns.

The Association of Lebanese Industrialists (ALI), led by Salim Zeeny, expressed regret in a statement over the government's adoption by decree of the 2025 budget on Thursday, without the text going through Parliament. Lebanese Prime Minister Nawaf Salam and several members of his team justified this procedure due to a lack of time, committing to prepare a draft law concerning the taxes outlined in the previous government's text, and to work on a genuinely "reformative" 2026 budget."The text [of the 2025 budget law] was not distributed to MPs and was discussed neither in the Parliamentary Finance and Budget Commission or the General Assembly. This is unacceptable, as the budget includes taxes and levies whose approval is the sole prerogative of Parliament," the institution denounced.The Association of Lebanese...