Industrialists urge revision
of 2025 budget tax measures

Taxes targeting on manufacturing alcohol

and sugary drinks make local products less competitive

The Association of Lebanese Industrialists (ALI) has voiced concerns over the recently approved 2025 state budget, calling on the government to revise tax measures that could harm local industries.

In a statement issued by its president Salim Zeenni, the association disapproved of the decision to impose taxes and fees through a government decree without proper parliamentary discussion. It acknowledged the necessity of an emergency budget to ensure the continued operation of public institutions, but said that taxation is the sole prerogative of Parliament.

The association highlighted several problematic provisions in the budget:

• Excise Tax on Locally Produced Alcoholic Beverages: ALI condemned the new tax on alcoholic drinks produced in Lebanon, warning that it would cripple local manufacturers, increase consumer prices, and negatively impact the recovering tourism sector. The association also pointed out that regional countries are easing restrictions on alcohol, making Lebanon’s decision even more questionable.

• Disproportionate Taxation on Domestic vs. Imported Alcohol: ALI revealed that the excise tax imposed on Lebanese-produced alcoholic beverages is higher than that on imported products, raising concerns about unfair competition and the potential closure of local factories.

• New Taxes on Sugary Drinks: The budget introduces a seven percent excise tax on soft drinks and fruit juices containing sugar. ALI warned that this would hurt low-income consumers while making Lebanese products less competitive against imports from Arab countries, which benefit from trade agreements that exempt them from customs duties. The association cautioned that this measure could lead to factory closures, job losses, and increased reliance on imports.


ALI urged the minister of finance, industry, and economy to intervene immediately to prevent economic damage, arguing that these taxes could backfire by reducing consumption and lowering VAT revenues.

The association said that despite the challenges of war, Lebanon’s treasury had achieved a budget surplus in 2024 without introducing additional taxes. The industrialists’ group demanded the government suspend the new taxes and submit an urgent bill to Parliament to repeal them, warning that the current policy risks harming both the economy and state revenues.

Echoing ALI's concerns, the Lebanese Franchise Association (LFA) called on the government to take measures that do not destroy the economy and growth.

LFA welcomed the government's promise to amend the fees and taxes included in the 2025 budget. It said that the new government has adopted the budget of the former cabinet, but that the window is still open to rectify the mechanism adopted to issue the budget and to address the issues it creates.

It said that the franchise sector is integrated with the industrial and tourism sectors, and therefore any harm to either of them directly affects its members. “Reform measures should be carefully considered, far from destructive haste,” said LFA in a statement.