Tax hike joins the unalike

Private sector economic bodies call on labor confederation to return to dialogue

The economic bodies of the private sector voiced disapproval of the suggested tax increases included in the 2012 budget draft.

“Imposing more taxes rather than seeking incentives to support (economic) growth would lead to a decline in growth indicators,” said a statement issued Friday (October 7) after a meeting chaired by the President of Economic Bodies, former Minister, Adnan Kassar.

The statement also criticized the withdrawal of the General Confederation of Labor Unions (GCLU) from the Price Index Committee, tasked with indicating the inflation rates. The economic bodies called on the labor confederation to return to dialogue.

The President of the National Union for Laborers and Employees Syndicates, Castro Abdullah, said that the GCLU is currently awaiting the outcome of the meeting the Prime Minister Najib Mikati will hold with business owners. “We would decide either to return to dialogue through the committee, or to take to streets on October 12,” Abdullah said. However, he said that the second scenario is more likely to happen.

The President of the GCLU, Ghassan Ghosn, had earlier said that the step is intended to pressure the Cabinet to reject the VAT increase included in the 2012 draft budget.

Ghosn said that the GCLU will suspend its membership in the committee until the Minister of Finance Mohammad Safadi retreats from the VAT increase proposal.