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...