Food Security Committee of Economic Bodies: Calls to Cancel 3% Environmental Tax on These Materials

The Food Security Committee of Economic Bodies held a meeting today at the Beirut and Mount Lebanon Chamber of Commerce headquarters, chaired by former Minister Muhammad Shihab, head of the Economic Bodies, focusing on the pressures affecting the food security file amid rising fuel and maritime shipping prices due to tensions in the Bab el-Mandeb Strait, along with global inflationary effects and worsening agricultural crop crises exacerbated by climate change.

Attending the meeting alongside Minister Shihab were Deputy President of the Beirut and Mount Lebanon Chamber of Commerce and President of the Supermarkets Owners Association Dr. Nabil Fahd, President of the Association of Oil Importing Companies Maroun Chamas, Secretary General of the Economic Bodies Alphonse Deeb, President of the Food Importers Union Hani Bchelli, President of the Lebanese Flour Mills Association Ahmad Hatit, President of the Food Industries Owners Association Ramsy Bounadour, Secretary General of the Butchers and Livestock Traders Union Majid Eid, Member of the Higher Council of Agriculture Kheir al-Jarach, Member of the Food Industries Syndicate Mazen Sano, and President of the Bekaa Wheat Farmers Syndicate Najib Fares.

After reviewing food prices presented by participating syndicates and referencing data from the Central Administration of Statistics, the committee noted that food prices recorded limited increases, while some items saw rises ranging between 5% and 7%.

The committee expressed concern over mounting pressures on food prices due to rising fuel and maritime shipping costs, as well as agricultural crop challenges, which could result in additional burdens on production and import costs, thereby increasing food prices.

To enable Lebanese citizens to contain any potential price hikes resulting from these factors, the Food Security Committee called for the following:

* Suspension of the 300,000 LBP fee on a gasoline tank until the end of this year.

* Cancellation of the 3% import duty.

* Cancellation of the 3% environmental tax on soybean meal, veterinary drugs, and feed additives—materials that are environmentally harmless—since imposing this tax increases costs for essential and vital agricultural and food industrial products.

* Efforts to reduce taxes imposed on institutions and companies, enabling them to withstand high operational costs and maintain their working capital, particularly in the absence of banking financing.

The committee affirmed that its meetings remain open, with a working paper outlining its proposals to be prepared ahead of discussions with relevant ministers, aiming to reduce costs and curb food price increases.

The committee urged government authorities to act swiftly to cancel the 3% environmental tax on soybean meal, veterinary drugs, and feed additives, which would have significant repercussions on numerous food items such as eggs, chicken, meat, milk, cheese, and many others.