Cabinet clings to new pay scale for public sector

Agrees to study set of law reforms

A draft amendment for the Value-Added Tax (VAT) law will be studied by a ministerial committee which will be formed by the Cabinet for this purpose. The Cabinet, however, reassured that the 10 percent tax will not be increased.

The Cabinet agreed to establish a committee to study law proposals for amending the code of commerce. It also passed a draft law amending a few procedures for the exchange of tax information.

The Cabinet is scheduled to discuss the funding of the salary scale for public workers in a session on Tuesday (February 19). Ziad Bekdache, Vice-President of the Association of Lebanese Industrialists (ALI), said the Cabinet is adamant about adopting the salary raise for public workers, despite private sector economic associations' objection.

"Prime Minister Najib Mikati said the Cabinet will adopt the salary scale draft law along with reformative measures," he said. The Cabinet plans to pay the scale in installments over five years. According to Bekdache, the scale will be funded through external sources as well as other measures like increasing the construction investment coefficient.