Lebanon’s tax hikes draw anger from economically frustrated public

Prime Minister Nawaf Salam has announced hikes on petrol and sales taxes. Analysts say it is a regressive policy.

Beirut, Lebanon – Anger in Lebanon is growing after the government of Prime Minister Nawaf Salam announced increases in petrol taxes and value-added taxes (VATs) last week.

The rises in what economists and analysts have called “regressive” taxes led to two protests on February 17 and an array of criticism against the government, including from media and voices that had previously been friendly to Salam’s reformist administration.

“The government lost its mind,” Megaphone News, an independent, progressive news outlet published on a social media account in response to Salam’s government announcing a 300,000 Lebanese pound ($3.35) price increase on 20 litres (about 5.3 gallons) of petrol or gasoline and a one percent increase from 11 to 12 percent on VAT – a consumption tax charged on goods and services at each stage of production.

On the morning of February 17, a handful of taxi drivers blocked the Ring Bridge in downtown Beirut to protest the rise in taxes. Later that evening, in Riad al-Solh Square, around 50 or so protesters gathered to express their discontent with the government’s decision.

“You have no housing, you have no loans, you have no safety, I mean, you live here in a prison, brother,” one angry protester told Lebanese television station Al Jadeed from the Ring Bridge protest.