VAT to contribute LBP 3,960 billion or 21% of revenues to state coffers in 2018
VAT to contribute LBP 3,960 billion or 21% of revenues to state coffers in 2018
Lebanon’s budget is suffering from a chronic deficit. In order to shrink this deficit, many postwar governments have introduced new taxes and fees and sharply increased existing taxes and fees. The Value Added Tax (VAT) was introduced on February 1, 2002, and today accounts for about 21% of budget revenues.
Taxes, fees, and state revenues are estimated at around LBP 18,686 billion in the 2018 budget. They derive from the sources shown in the following table, where 50.8% of revenues are secured from five sources (VAT, telecommunications revenues, the profit tax, the bank interest tax, and import duties).
A table showing state revenues from taxes and fees in 2018.
|
Revenue source |
Amount (LBP billion) |
Percentage of total budget revenues (%) |
|
VAT |
3,958 |
21.10 |
|
Revenues from telecommunications budget savings |
2,071 |
11 |
|
Profit tax |
1,493 |
7.98 |
|
Bank interest tax |
1,302 |
6.90 |
|
Real estate registration fees |
886 |
4.60 |
|
Import duties |
863 |
4.60 |
|
Wage and salary taxes |
780 |
4.17 |
|
Stamp fees |
730 |
3.90 |
|
Fuel duties |
686 |
3.60 |
|
Fees on domestic consumption of cars |
542 |
2.90 |
|
Fees on tobacco |
447 |
2.39 |
|
Pensions deductions |
311 |
1.66 |
|
General Security fees |
301 |
1.60 |
|
Traffic fees |
282 |
1.50 |
|
Fees on leaving Lebanese territories |
223 |
1.19 |
|
Beirut Port revenues |
214 |
1.14 |
|
Régie Libanaise des Tabacs et Tombacs profits |
126 |
0.67 |
|
Casino du Liban revenues |
119 |
0.63 |
|
Beirut International Airport revenues |
103 |
0.55 |
|
National lottery revenues |
76 |
0.40 |
|
Notary fees |
70 |
0.37 |
|
Work visa fees |
68 |
0.36 |
|
BDL revenues |
62 |
0.33 |
|
Alcoholic beverages fees |
45 |
0.24 |
Source: Information International based on 2018 budget law.
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