Finance Minister Yassin Jaber on Wednesday assured that the upcoming national budget will not include broad tax hikes, citing the country’s fragile economic conditions.
Addressing speculation about new taxes, Jaber told Voice of Lebanon that raising taxes “is not feasible under Lebanon’s current economic conditions.” He said the government has explained to the International Monetary Fund (IMF) that “there cannot be spending without revenue,” a principle that led authorities to introduce a modest levy on fuel rather than impose broader taxation.
Jaber stressed that Lebanon’s relationship with the IMF and the World Bank remains strong.
“Lebanon needs these loans because there are limited options aside from the World Bank,” he said, highlighting several approved agreements, including loans tied to the Litani project and the Electricité du Liban, as well as a reconstruction loan pending approval in Parliament.
The minister also provided an update on efforts to amend key legislation in line with IMF recommendations.
“We explained that we are a democratic country, so adjustments have been made within Parliament and by the Constitutional Council,” he said. “We prepared legislation in the Finance Ministry to incorporate the necessary amendments, which will now be submitted to the government and then back to Parliament for review and approval.”
On negotiations with the IMF, Jaber said talks continue to focus on strengthening confidence in Lebanon’s banking sector, restructuring it effectively, implementing tax and customs reforms, and recovering deposited funds.
“We are working to resolve the financial crisis, with priority given to the banking sector and programming the return of deposits to their owners. Restoring a sound and reliable banking system is the government’s top priority," he said, calling it a key step toward removing Lebanon from the Financial Action Task Force (FATF) gray list.
“We are working on a solution that will bring multiple benefits,” he said.
The minister also discussed broader modernization efforts.
“We are actively addressing the current economic crisis while laying the foundations for modernization and digitalization across government institutions, particularly the ministries of Justice, Finance, and the commercial registry,” he said.
