Report: New Tax Hikes Pave Way for 'Social Revolution'

As the parliament continues to grapple over finding sources of funding for the long-awaited wage scale through the imposition of new taxes, political sources warned that tax hikes would set grounds for a “social revolution” in Lebanon, al-Joumhouria daily reported on Friday.

“The raises in taxes under the pretext of funding the wage scale will only be a source, not to only finance it, but also for squander, corruption, tax evasion and increase in smuggling. It will pave way for a social revolution” well-informed sources told the daily on condition of anonymity.

They warned that such a tax hike will “cause a contraction in purchasing power and in tourism. Many have warned that what will be given to the employees through the wage scale will be taken from them through new imposed taxes.”

They noted that the political class continue to inflict new levies instead of addressing something more important which is squandering of public funds.

Referring to other sources to fund the pay scale for government employees which include judges, teachers and military personnel, they said: “Funding the wage scale can be done by stopping the waste of money in the airport, customs, shipping and by stopping bargains and projects that involve huge kickbacks.”

The sources pointed out that "through this act, the authority today is establishing for a social revolution that could slip out of control.”

The parliament has hiked the value-added tax (VAT) from 10 to 11% , increased levies on financial transactions and increased other taxes related to cement, stamps, cigarettes and alcoholic beverages.

Protesters meanwhile took to the squares in Beirut and Tripoli on Thursday to reject the new taxes following calls on social networking websites.

Protesters at Beirut's Riad al-Solh Square were led by activists from the Kataeb Party, the National Liberal Party and others from March 14 and the civil society.

Kataeb had repeatedly rejected any tax hike aimed at funding the new wage scale, calling on authorities to secure funds through putting an end to “corruption” and “the squandering of public money.”