Heated debate awaits budget: Bifani

Among its downsides was excluding
the salary scale and tax reforms

The amended draft budget was submitted to Cabinet for final inspection prior to its referral to Parliament, said Alain Bifani, director general of the Ministry of Finance. “The Cabinet will only take a look at the draft (law) because the process has already been done,” Bifani told a seminar held by Real Estate Association of Lebanon (REAL). However he expected a heated debate over the bill in Parliament: “A strong debate will emerge over endorsing a budget without clearing the accounts of the previous years.”

According to Bifani, the draft budget included negative aspects: “Among the downsides of the draft is that it excluded the salary scale, and the tax procedures (that were included in the initial proposal).” Tax reforms like increasing the VAT to 12 percent and the tax on interest on deposits to seven percent, and introducing a tax on profits from real estate transactions were all removed from the draft.

The State has not taken any measures to improve revenues since 2003, back when it introduced the tax on interests on deposits, Bifani said. He said it is imperative to find new revenue sources, especially seeing the drop in the revenues to GDP ratio over the last three years.

Reported by Hanadi Chami