Lebanon’s Austerity Dilemma: IMF-Driven Taxes Deepen Burden on Poor and Middle Class

• The Lebanese government raised VAT from 11% to 12% and imposed a new gasoline tax to fund public sector wage increases.
• These measures disproportionately burden the poor and middle class, as indirect taxes like VAT and fuel levies consume a larger share of their income.
• The gasoline tax will increase transportation and production costs, leading to higher prices and inflation across the economy.
• The government’s reliance on regressive taxes, rather than structural reforms or improved tax collection, follows IMF and World Bank policy frameworks.
• This approach risks deepening social hardship and undermining economic growth, while failing to address underlying issues of justice and equity.

Source: tehrantimes.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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