The Lebanese Cabinet is set to discuss a draft law granting tax and fee exemptions to those affected by the Israeli war on Lebanon, a move that has raised questions over its financial implications and political motivations, Al-Anbaa newspaper reported. 

Item number three on the Cabinet’s agenda for today's session states: “A draft law aimed at granting certain tax and fee exemptions to those affected by the Israeli war on Lebanon and suspending deadlines related to rights and obligations.”

However, the proposal has sparked debate over who exactly qualifies as “affected.” Observers are also questioning the scope of the exemptions, which taxes and fees will be covered, and who will determine the beneficiaries. Additionally, there is speculation about why the item was placed so prominently on the agenda and who pushed for its inclusion.

Electoral Considerations?

Some analysts fear the measure may be aimed at mitigating public discontent within Hezbollah and Amal Movement strongholds, particularly as Hezbollah has yet to deliver on its promises of compensating those impacted by the conflict. Critics warn that the exemptions could serve as a political maneuver in the lead-up to Lebanon’s municipal and local elections.

Financial Burden on the State

Financial experts have urged caution, warning that approving the measure without thorough assessment could further strain Lebanon’s already struggling treasury. Exemptions from taxes and fees could deprive the state of millions of dollars in much-needed revenue.

“These types of measures require clear eligibility criteria before being enacted,” the financial source said. “At a time when the government is facing a severe fiscal crisis, Lebanon cannot afford to lose additional tax revenues without a well-defined framework.”