2023-09-06 10:28:35
“Lebanese Debate”
The financial and economic expert, Dr. Anis Abu Diab, said, “If a decision to dollarize taxes is issued according to a law, that is, with the approval of the Council of Ministers, and later the Council referred the budget to the Parliament, and it was approved, then it becomes valid and there is no problem with it.”
In an interview with the “Lebanese Debate”, Abu Diab considered, “Any tax measure in the current situation will lead to an increase in contraction in the economy, and will lead us to stagnation, and therefore imposing taxes, regardless of whether they are in Lebanese pounds or US dollars in light of an economic crisis, is an unhealthy measure.” and improper.”
He asked: “What is the defect if the customs duties are in dollars on imported goods that are sold in dollars in the local markets?” With an auditor’s look at the details of the budget, he saw that the one who prepared it was accurate when he said: “Whoever receives his salary in dollars from foreign institutions will be subject to a tax in dollars only.” Considering that “the problem is not in this detail, because it will not reflect negatively on the money market, but the tax procedure is the one that will reflect negatively on the fiscal policy, due to the increase in tax evasion.”
He pointed out that “40% of our economy is an illegal economy, or a muffled economy, and therefore this matter will double the muffled economy, and will limit the ability of legitimate institutions to compete.”
And he considered that “customs duties, or any other tax procedure in dollars, will increase the dollarization of the national economy, and this is a dilemma that must be overcome, but it takes time.”
He pointed out that “the Lebanese pound will become less traded, and the economy will be more dollarized, and when the pound becomes less traded, its use as a savings unit becomes less, and thus it becomes as if it has no value.”
Abu Diab concluded by saying: “The burden of dollarization is restoring confidence in the state on the one hand, and in the financial and banking sector on the other hand. As for tax procedures, regardless of the nature of the currency, it is an out of place measure, in light of the economic crisis.”
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#Misplaced #procedure.. #lira #lose