FeaturesLebanon’s tax hikes draw anger from economically frustrated publicPrime Minister Nawaf Salam has announced hikes on petrol and sales taxes. Analysts say it is a regressive policy.
## Regulation: Tax Adjustments in Lebanon
Regulation: Tax Adjustments in Lebanon
On February 17, 2026, the Lebanese government, led by Prime Minister Nawaf Salam, implemented increases in petrol taxes and value-added taxes (VAT). The petrol price increased by 300,000 Lebanese pounds ($3.35) for 20 liters (approximately 5.3 gallons), and VAT rose from 11% to 12%.
The tax adjustments have led to public protests, with taxi drivers blocking roads in Beirut and approximately 50 individuals gathering in Riad al-Solh Square. These actions reflect public dissatisfaction with the government's fiscal policies.
Prime Minister Salam defended the tax increases, citing the need to fund salaries and pensions for state employees and retirees. He emphasized the government's intention to reform the tax system rather than merely impose new taxes. Finance Minister Yassine Jaber noted that while the fuel price hike is immediate, VAT changes require parliamentary approval.
The decision has faced criticism from various quarters, including some within the government coalition. Analysts argue that the tax increases disproportionately affect the country's vulnerable populations and could exacerbate economic inequalities.
On February 17, 2026, the Lebanese government, led by Prime Minister Nawaf Salam, implemented increases in petrol taxes and value-added taxes (VAT).
Lebanon has been experiencing significant economic challenges since the collapse of its banking sector in 2019. The Lebanese pound has depreciated by over 90%, severely impacting the population's purchasing power. The high cost of living remains a critical issue, with many relying on remittances from abroad.
Analysts suggest that the government should consider taxing undertaxed sectors such as real estate and luxury goods to generate revenue without burdening the general populace. This approach could help address economic disparities more effectively.
For further details, please refer to official communications from the Lebanese government and financial authorities.
Based on reporting by Al Jazeera.
