The Daily Star
BEIRUT: Prime Minister Saad Hariri promised Wednesday that he would not impose new taxes on institutions or individuals as a means of reducing Lebanon's budget deficit.
Association of Banks in Lebanon Chairman Joseph Torbey, who headed a delegation to meet with Hariri, had reiterated to the premier the importance of rebuilding the Lebanese economy “according to the stipulations of the CEDRE program, which includes a number of demands that would help [this process],” according to a statement from Hariri’s press office.
At last year’s CEDRE conference, which was held to boost Lebanon’s ailing infrastructure and economy, members of the international community pledged $11 billion in grants and soft loans to finance Lebanon’s ambitious Capital Investment Project, a five-year program aiming to rehabilitate Lebanon's degraded infrastructure.
To unlock these funds, Lebanon has promised to first carry out much needed reforms - chief among them the country’s budget deficit, which currently stands at about 150 percent its GDP.
As the new government worked to form its policy statement, a number of politicians, including Telecommunications Minister Mohamed Choucair, said they would oppose any attempt to address the deficit that involved new taxes. They called instead for Cabinet to focus on the wallowing electricity sector and wasteful spending.
Torbey added Wednesday that he would be able share Hariri’s optimism about any proposed economic reforms only if his government reaches an agreement on how best to carry out such plans. He said that “up until now, it seems that there is consensus on fundamental issues.”
