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Lebanon 2027: Taxes Push Citizens Away
Lebanon's 2027 budget highlights the country's heavy reliance on taxes on goods and services, which account for approximately 86% of the estimated total revenue, with particular dependence on value-added tax (VAT) exceeding 205 trillion Lebanese pounds. Although the budget demonstrates fiscal discipline by showing no declared deficit or reliance on borrowing, the challenge lies in the dependence on consumption taxes and indirect levies that significantly impact low- and middle-income households. Additionally, there are challenges related to expanding the tax base, improving the effectiveness of the tax system, and reducing reliance on indirect taxes to ensure revenue sustainability without hindering economic growth. The figures indicate that taxes on wages and profits make up a small fraction of total revenues, while dependence on consumption taxes complicates balancing government financing with the burdens placed on Lebanese citizens.
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