Modern Income Tax Law to Boost Investment

The joint committee for reviewing and redrafting the income tax bill, comprising representatives from the Council of Ministers and the Ministry of Finance, held a meeting at the ministry as part of the workshop on updating Lebanon’s tax system and aligning it with international standards, following a proposal and instructions from Minister of Finance Yassine Jabber.

Representatives from the Council of Ministers included Advisor to the Prime Minister Mira Mabed and lawyer Karim Dagher, accompanied by a technical team; from the Ministry of Finance, Director of Revenues Muhammad Wafai and senior officials from the directorate, along with representatives from the General Director’s office and Advisor to the Minister of Finance Claudine Karki.

The committee’s work aims to draft a modern, practical income tax law grounded in Lebanon’s economic and labor reality, balancing the stimulation of investment and job creation with ensuring sustainable and fair revenues for the treasury.

Within this framework, the guiding principles the law will be based on were discussed, including constitutional legitimacy, fairness, transparency, accountability, and the results of a review of tax exemptions, which will help broaden the tax base and achieve a more equitable distribution of the tax burden.

Participants agreed to adopt a systematic approach starting with adopting the guiding principles, followed by a detailed review of the law’s provisions and technical and legislative audits to address loopholes enabling tax evasion, with the redrafting process carried out collaboratively through engagement with professional and economic chambers, associations, and experts.

This path aims to reach a balanced, implementable text that respects international standards and Lebanon’s economic specificity, marking a crucial step toward tax reform and enhancing financial equity and sustainability. It was also agreed to schedule consultations with chambers, institutions, and experts according to an intensive work plan to achieve results as quickly as possible.