The Ministry of Finance will soon allow citizens to pay taxes using bank cards, in a step officials say is aimed at simplifying procedures, reducing bureaucracy and strengthening transparency.

Finance Minister Yassine Jaber sent a request to the Public Procurement Authority seeking its opinion on contracting with banks and money transfer companies to enable electronic payments. The authority responded positively, clearing the way for the decision to move forward.

The ministry clarified that the measure does not apply to frozen deposits in commercial banks, meaning blocked funds cannot be used to pay taxes. The official exchange rate for these transactions has been set at 89,500 Lebanese pounds to the dollar, but only for fresh U.S. dollars.

Economic expert Jassem Ajaka told local broadcaster MTV that the main significance of the step is that banks will now carry out scrutiny of the source of funds.

“Its impact on citizens’ lives and on the cash economy is that the verification of the origins of money will be carried out by banks,” he said.

“This decision does not directly limit the cash economy, but it makes it mandatory for banks to verify the source of funds, thereby imposing greater control on cash. It can also be seen as an indirect invitation to restore the role of the banking sector in state-related transactions, which sends a positive message to international institutions and to the Financial Action Task Force," Ajaka added.