Source: Kataeb.org
Monday 10 March 2025 16:01:59
The Association of Lebanese Industrialists (ALI), led by Salim Zeeny, strongly criticized the government's decision to approve the 2025 budget by decree, bypassing parliamentary debate and approval.
In a statement, ALI expressed deep regret over the move, stressing that the budget—containing new taxes and levies—should have been subject to parliamentary scrutiny.
“The text of the 2025 budget law was neither distributed to MPs nor discussed in the Parliamentary Finance and Budget Commission or the General Assembly. This is unacceptable, as approving taxes and levies falls exclusively within Parliament’s jurisdiction,” the statement read.
Lebanese Prime Minister Nawaf Salam and several members of his cabinet defended the decision, citing time constraints. They pledged to introduce a draft law addressing the tax measures outlined in the previous government’s budget while also working toward a more comprehensive, reform-driven budget for 2026.
ALI urged the government to reconsider its taxation policies, warning that they could severely impact Lebanon’s struggling industrial sector. Despite official pledges to revitalize economic activity, the association argues that certain proposed taxes would have the opposite effect.
One of its key grievances is the imposition of taxes on locally produced alcoholic beverages, a decision it called “scandalous.” The association criticized the measure for targeting what it described as a “promising” sector, questioning whether the government’s intent was to alter Lebanon’s long-standing economic and cultural identity.
“This decree comes at a time when several conservative countries are easing restrictions on alcohol consumption. Is the goal to redefine Lebanon’s identity?” the statement asked.
Additionally, ALI pointed out a discrepancy in excise duties, noting that imported alcoholic beverages would be taxed at a lower rate than locally produced ones.
The association also condemned the introduction of a 7 percent excise duty on non-alcoholic sweetened beverages, warning that the policy would give an unfair advantage to imported products, particularly from Arab countries, at the expense of Lebanese manufacturers.
“The Lebanese market will be flooded with foreign products, and local factories will face closure,” it cautioned.
In response, ALI has called on the ministers of finance, industry, economy, and trade to intervene immediately to prevent what it described as a “massacre against the national economy and industry.” The association warned that imposing new taxes without carefully assessing their economic impact could reduce domestic consumption and ultimately lower VAT revenues.
“The results will be the opposite of what is expected. Instead of increasing treasury revenues, these policies risk forcing Lebanese businesses to shut down or relocate to neighboring countries,” ALI said.