Overview:
Lebanon's parliamentary budget committee completed its review of the 2027 budget law, suspending several provisions related to new fees proposed by ministries including youth, sports, labour, and public works for further discussion with government agencies. Finance Minister Yassin Jaber issued three decisions regulating tax deadline suspensions and extending value-added tax filing periods. The Finance Ministry also clarified that company referrals for investigation proceed to the Financial Public Prosecution, not the central bank's special investigation unit, correcting media reports.
Details:
Deputy Ibrahim Kanaan, chair of the parliamentary finance and budget committee, announced completion of substantive budget article review, with discussions on constitutional positions and ministerial allocations beginning next week starting with the presidency. The committee suspended judgement on multiple fee increases pending inter-agency coordination but confirmed "tangible progress" on the budget framework.
Jaber's three decisions established precise procedures for applying the legal deadline suspension that runs from March 1 to July 31, 2026, with deadlines resuming August 1, 2026. The measures cover tax declarations, fee payments, appeals against assessments, refund requests, and administration timelines. A separate decision extended the deadline for value-added tax declarations and settlement of related penalties.
The Finance Ministry statement emphasized that company referrals for potential violations proceed through the Financial Public Prosecution, a distinction the ministry deemed essential for accuracy in reporting investigative procedures and institutional roles.
Outlook:
Observers await government responses to questions on revenue sources and the distributional impact of the budget on lower-income groups. Labour union leader Castro Abdullah stated that the absence of new taxes does not guarantee social equity or protection for modest-income workers, signalling continued debate over the budget's fairness during implementation discussions.