Economic Bodies Urge Lebanon to Revoke New Environmental Fees Amid Crisis

The economic organizations have called on the Lebanese government to reverse its decision to impose new fees on a broad range of goods under the pretext of meeting environmental requirements.

In a statement, they expressed their deep appreciation for the efforts made by the government led by Nawaf Salam amid Lebanon's exceptional circumstances. However, they clarified that imposing substantial additional fees at this highly sensitive stage on goods that directly or indirectly affect all citizens and production sectors without exception is unjustified and inappropriate. This move follows the recent tax imposed on gasoline, exacerbating living costs and increasing pressure on the already collapsing economy.

The organizations emphasized their full support for environmental protection and the pursuit of sustainable solutions to the waste management issue. They stressed that addressing this matter should not involve imposing new fees on citizens and economic sectors. Lebanon is undergoing a severe economic and social collapse, with citizens enduring a suffocating livelihood crisis and institutions and production sectors facing unprecedented contraction. This situation requires adopting stimulative policies to revive the economy rather than imposing further taxes and fees that could undermine recovery prospects in an economy expected to shrink by more than 10% next year. They warned that the new fee, estimated to generate revenues of approximately $380 million, would only deepen the economic and social crises, increase production costs and prices, and weaken citizens' purchasing power.

The organizations expressed surprise at framing the environmental issue, despite its importance and legitimacy, as conflicting with economic and social priorities. They affirmed that environmental protection has always been central to their concerns and has long been a fundamental focus of their positions and follow-up efforts.

They stated that the absolute priority at this stage must be to address economic and social conditions, provide resilience for citizens, and ensure continuity and competitiveness for institutions, thereby creating the necessary foundation for any sustainable reform, including environmental reform.

The statement underscored that the state has many alternatives to increase its revenues without imposing additional burdens on citizens and productive sectors. These alternatives include improving tax collection efficiency, combating tax evasion, and regularizing the status of illegal institutions that constitute nearly half of Lebanon's economy and pay no taxes or fees, depriving the treasury of significant revenues. Additionally, the state should hold the real polluters and severe environmental offenders financially accountable for their actions.

The economic organizations concluded their statement by urging the government to promptly withdraw the decision to halt the market confusion it has caused. They affirmed their full confidence in the government and its head regarding all sincere efforts undertaken to save Lebanon and set it on the path to recovery and progress.

They also announced their readiness to participate in any dialogue, workshop, or initiative launched by the government to contribute to formulating scientific, practical, and sustainable solutions to the solid waste issue, achieving the desired environmental goals while sparing citizens additional burdens and preventing further crises for the economy.