In response to the disaster, the then government established the National Authority for Reconstruction, which continued to operate even after its mission was completed. Although the Authority was dissolved in 1977, the state is still collecting “reconstruction fees”.

Establishment

Article 1 of the Law issued on April 9, 1956 stipulated the establishment of the National Authority for Reconstruction with the purpose of reconstructing the areas damaged in Tripoli and North Lebanon by the 1955 floods as well as those affected by the 1956 earthquake. The Authority is a public institution enjoying financial and administrative autonomy and falling under the posterior supervision of the Audit Court. It is run by a board of directors that consists of a president and four members appointed for a renewable year by virtue of a Decree issued upon the proposition of the Minister of Finance.

Functions

According to the law, the National Authority for Reconstruction shall have the following functions:

• Lay down sample plans and designs for the reconstruction of towns.
• Acquire the properties necessary for reconstruction.
• Carry out restoration and reconstruction work.

Occupants of the buildings affected by the flood or the earthquake shall have access to the new or restored buildings under certain conditions.

Funding

Different sources feed the fund supporting the Authority. These sources are:

• Aid and donations.
• Treasury credits.
• Internal loans.
• Fees and taxes.

Abolition

The National Authority for Reconstruction was supposed to be abolished on December 31, 1957 after President Emile Boustany had submitted his resignation. However, the Authority remained operative and expanded its functions and responsibilities beyond the limit set initially by the law. Additional non-seismic-related functions were delegated to the Authority.

Later, Legislative Decree No. 15/59 cancelled the Authority and replaced it with the Reconstruction Administration, which was affiliated with the Ministry of Public Works and Transport.

In turn, the Administration was abolished in 1964 and the National Authority for Reconstruction was established and remained until the issuance of Legislative Decree No. 29/77 on April 18, 1977, which dissolved it and stationed its personnel to the Directorate General of Housing, falling under the Ministry of Housing and Cooperatives. The Ministry was assigned all the rights and duties of the Authority.

In 1983, the Independent Housing Fund was abolished and the Public Housing Institute replaced it.

Granting Occupants Ownership Rights

In 1996, Law No. 519 was issued granting occupants the right to possess the land plots on which reconstruction occurred, under the terms and the limitations set by the law.

Reconstruction Fees

Although 36 years have lapsed since steps were taken to abolish the Authority and grant occupants ownership rights, the state still imposes what is known as the “reconstruction fee”. The revenues yielded from the collection of reconstruction fees were estimated in the 1999 budget law at LBP 20 billion compared to LBP 18 billion in 1998. These revenues dropped to LBP 2 billion in 2012 following the cancellation of a number of fees.

The taxes were set up since the establishment of the Authority in 1956 as follows:

• An additional 3% tax levied on the income and built property tax dues when such dues exceed 1000 Lebanese liras.
• An additional tax of 2 Lebanese liras on each horsepower.
• An additional tax of LBP 25 piasters on each 20 liters of gasoline, 1.5 piasters on each liter of gas oil and 1 piaster for each liter of fuel oil.
• A postal stamp worth 2.5 piasters on all sealed postal packages/envelopes except for publications and in compliance with the signed international agreements.
• An additional 3% tax on horse racing and pigeon hunting wagers and an extra 1 Lebanese lira on first class tickets, 25 piasters on second class tickets and 10 piasters on third class tickets.
• An additional 10 piasters on ceremony tickets that do not exceed 100 piasters; an extra 25 piasters on tickets between 100 piasters and 2 Lebanese liras; an extra 30 piasters on tickets between 2 and 5 Lebanese liras and an extra 50 piasters on tickets priced over 5 Lebanese liras.
• Additional customs fees on certain imported products.
• An additional 5% on the fees of registration of foreign-owned property.

As previously mentioned, the fees and taxes persisted despite the cancellation of the Authority. In the 1980 draft budget law, the estate registration fee for foreign investors jumped from 5% to 10% . The additional fee was omitted later in 2001.

The reconstruction fees were amended in conformity with Table 9 annexed to the 1991 budget law as follows:

• An additional 5% levied on income and built property taxes when such taxes exceed 1000 Lebanese liras.
• An additional tax of 200 Lebanese liras on every horsepower produced by car engines.
• An annual flat sum of 8 million Lebanese liras paid by the Authority of Post and Telegraph in addition to 25 Lebanese liras for each sealed postal package/envelope.
• An additional 5% tax on horse racing and pigeon hunting wagers and an extra 100 Lebanese liras on first class tickets, 75 on second class tickets and 50 Lebanese liras on third class tickets.
• An additional 10% on the fees of registration of foreign-owned property.
• An additional fee of 250 Lebanese liras on the permits to transfer and acquire 4th category weapons and ammunitions (non-military weapons)
• An additional fee of 150 Lebanese liras on the permits to transfer and acquire 5th category weapons and ammunitions (hunting weapons of all calibers)
• An additional 100 Lebanese liras for each forestry investment petition or request; 200 Lebanese liras for each ton of charcoal and 600 Lebanese liras for every ton of wooden raw material bound for exportation.
• An additional 10% on the license plate registration fees.
• An additional 5% on the advertisement licensing fees.
• An additional 10% on the advertisement annual investment fees and another 10% on the monthly investment fees.
• An additional 15% on the fees of licensing gas stations.
• An additional 5% on the construction permits fees.
• An additional 5% on ceremony tickets.
• An additional 5% on notary fees.
• An additional 10% on the protection of industrial and commercial property fees.

In the 1993 budget law, the fees levied on gasoline, gas oil and fuel oil were cancelled.

According to Table 9 annexed to the 1993 budget law, the additional tax on ceremony tickets was put at 5%.

With this tax maintained, the reconstruction fees dropped to roughly LBP 2 billion annually.