Amid fluctuations in the price of the dollar on the black market and its continuous rises, the application of collecting the customs dollar on the price of 15,000 Lebanese pounds on imported goods and commodities enters into force on December 1, following the announcement by the Minister of Finance in the caretaker government in Lebanon, Youssef Al-Khalil, of the decision through a letter that he submitted. To the Banque du Liban, justifying that “this measure helps limit the exploitation of price differences, as well as mitigate distortions and losses incurred by the treasury.”
Uncertainty prevails about the repercussions of the decision in light of a shaky political and economic situation. According to what the financial and economic expert Dr. Bilal Alama confirmed to Janoubia, “it is currently one of the most difficult things to know the repercussions of the customs dollar,” noting that “although this step is required at a specific moment, But it is impossible for its approval and implementation to be in the hasty manner in which it took place.”
The dramatic increase in the prices of those goods will reach 50% on goods and services not covered by the exemption
He pointed out, “There is severe confusion at the level of the political authority concerned with this issue, starting with the contradiction in statements between the Minister of Finance, the Governor of the Banque du Liban, and the Prime Minister, who announced that the application to raise fees and taxes, the adoption of the customs dollar, and the application will be gradual to spare citizens its consequences.”
Alama considered that “in the form announced by the Minister of Finance and its implementation on the first of December, the state represented by the official agencies and the rest of the ministries is concerned with covering the very large spending that was approved in the 2022 budget, and it seems that it is working to collect in any way possible without taking into account the consequences resulting from that. So the Minister of Finance announced the approval of the new customs fee.
Severe confusion at the level of the concerned political authority, and a contradiction in statements between the Minister of Finance, the Governor of the Banque du Liban, and the Prime Minister
Regarding the repercussions of applying the customs dollar to commodities, Alama saw that “there are many commodities, specifically food commodities that are exempt from customs duties, but on the other hand, there are indirect consequences that will affect most of these commodities, as well as strategic commodities such as fuel, transportation, transportation, shipping and storage, in addition to the absence of Electricity, which imposes huge costs on companies so that they can secure healthy and appropriate storage,” pointing out that “this matter will lead to a dramatic increase in the prices of those goods, and it will be at a minimum of 20% and a maximum of 50% on the rest of the goods and services that are not covered by the exemption.” “.
And he stressed that “this process was accompanied by an increase in fees and taxes in the 2022 budget, and it was at high rates, as if the state and the concerned official agencies announce their death when they search for collection in any possible way without studying the negative consequences and effects that could be produced against the citizen.”
Approval of the 15,000 fee will open the door to illegal speculation and to some traders and monopolists to reap profits.
And he considered that “every country intends to increase collections in this way, indicating that its deadline is approaching, because it must take into account the needs of the citizen and society when approving any collection by studying its positive results and avoiding negative effects.”
He said: “What happened in Lebanon with the approval of the 15,000 fee will open the door to illegal speculation and to some merchants and monopolists, who in the previous period imported huge quantities of commodities in order to store them, so that when the fee is raised, they would sell them and make illegal profits.” .
Alama explained that “in parallel with raising the customs dollar, as well as raising fees and taxes in the 2022 budget, the price of the dollar on the black market continued to move at a rapid pace and with an upward trend.” Figure, the price of the dollar will continue to rise because the monetary mass in the Lebanese pound will increase at a rapid pace, and this will constitute a way to put pressure on the price of the dollar, with a complete lack of confidence in the national economy.”
The concerned official agencies suffer in searching for sources of funding that seem to be available only from the pockets of citizens
And he pointed out, “It is clear that the political authority is floundering, and the concerned official agencies, such as the Ministry of Finance and the Banque du Liban, are suffering in the search for sources of financing that appear to be available only from the pockets of citizens and the path of the poor, at a time when it was possible to go to collect revenues, whether from violations or From the occupied sea, river, and land properties and from the lands of the commons, or by alleviating the burden of electricity and energy that has consumed billions of dollars from the pockets of citizens.
Alama said: “It seems that all these matters were absent from the political class, so it went to raise the customs dollar fee, fees and taxes, and search for sources to finance the treasury from the pockets of citizens.”
And he concluded: “Beware of this step, whose results will be disastrous if the application continues in the form in which the application was requested to be.”