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Daily Tax Report: International

Bank of Beirut Says Proposed Lebanon Tax Hikes Threaten Industry

May 10, 2019, 9:52 AM

Plans to increase tax on interest on deposits to 10% from 7% will raise average tax on banks to 50% from 40%, the Bank of Beirut’s chairman Salim Sfeir said in a televised press briefing.

  • “This is a dangerous indicator to the sector’s effectiveness,” Sfeir said.
  • The industry is already facing reduced revenue after the government raised tax on interest from 5% in 2017 and increased tax on profit. Banks may face lower credit ratings, according to Sfeir.
  • Lebanon’s government is considering ways to boost revenue, as it seeks to reduce a budget deficit that has reached 11% of gross...

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