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Lebanon faces significant challenges in tax compliance, especially concerning the private and religious school sectors. There are suspicions that some financial institutions within these sectors are not subject to legal and tax regulations, which weakens the country's resources and impacts the funding of public services such as education, health, and infrastructure. The core issue lies in weak oversight and the ineffective enforcement of laws, particularly given the presence of an unregulated economy and cash activities in dollars that are difficult to monitor. Non-compliance with tax obligations harms the principle of equality before the law, widens social gaps, and increases poverty, while also reducing the state's capacity to address economic and social challenges. Therefore, strengthening financial oversight, linking data between government agencies, and documenting tax compliance across all sectors of institutions have become national necessities to enhance financial stability and economic justice.
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