Increase Tax???
BEIRUT: The Cabinet will review tomorrow the first draft of the five-year economic program which is aimed at slashing the public debt and stimulating the economy. Apart from privatizing telecoms, the program calls for raising value added tax (VAT) gradually from 10 percent to 15 percent and introducing a unified tax system.
Continue here.
posted by Lazarus, 2:16 PM
7 Comments:
why are you surprised, i'm sure this was part of the election campaign program.
By
Jamal, at 4:39 PM
Jamal,
The fact that the pols might have had an agreement about this does not make it less important. The public neeeds to find out the estimated effect of the tax increase; how much revenue will it generate and above all from whom. If the tax increase is simply an increase across the board then it will be difficult to justify it. Why should we balance the budget on the backs of the poor?
Maybe what we need is an effective progressive income tax or at least a VAT with more than one rate. Luxury items could very easily be subject to say 20-25% VAT and basic necessities could be even exempted from the VAT.
It is time that we stop accepting whatever the pols dish at us.
By
Anonymous, at 5:12 PM
"Maybe what we need is an effective progressive income tax or at least a VAT with more than one rate. Luxury items could very easily be subject to say 20-25% VAT and basic necessities could be even exempted from the VAT.
It is time that we stop accepting whatever the pols dish at us.
"
that's theoretical, because you have to define if a product is a luxury or not; it's easier said than done when you have ten of thousands of products on the market.
By
Anonymous, at 8:00 PM
VAT is not a solution as far it s a remplacement of the "dollars douanier" dunno how to say it in english.
@ the time VAT was introduced they were telling us that it was to cancel the entry taxes for goods.
they didnt yet... which is against some regulations concerning for ex the MEDA partnership.
also with the debt/head which is the highest worldwide (officially jsut malawi has a higher ratio, but if we include also what the autonomious offices due, etc... we re getting higher, the service of the debt is higher then governemental revenues.
if the VAT is increased, it ll lower the growth rate which would decrease again the revenue.
we need a electrical shock and prevent the growth rate to be touched.
for ex a small devaluation of the LL might increase the competitivity of the lebanese goods and services worldwide, attract capitals here as investments and therefore increase the growth rate as well as decrease the unemployment rate and therefore the revenue of the country.
however in the short term, the people would be suffering of a lower purchasing power. on the long term, the growth rate due to the devaluation would resolve that question.
but i think that devaluation would have anyway a small impact on the lebanese economy as most of it is dollarized (about 70%)
second system, to lower our debt would be to tk over the fortunes of some people ;)
hariri's family according to forbes is said to have 16 billions of US, about the half to the third of the lebanese debt, let them make a gesture to lebanon for us to see they really like that country
By
Anonymous, at 1:48 AM
make a geture to see if they really like the country. you're kidding right?
Ok, so how would i prove that i like the country??????
What would you do, frencheagle, to prove you like the country? Please help me, i think i won't be able to prove it, i'm in deep shit!
By
Mo, at 2:24 AM
Anon 8:00,
We do not need to reinvent the wheel. There is nothing radical about the idea of putting a special tax on luxury goods. The practice has been in use all over the world for a very long time.
The easy answer to your question is that there is no need to classify each good in the market. Instead the government will make a list of certain items such as cars over $50,000 or dwelklings over $500,000.00 etc... to which a special surcharge or a higher VAT is applied. All classifications are ultimately subjective but I am sure that we can agree that items that are basically used by those in the 10% of the income scheme are to be treated differently than Falafel or bread.
By
Anonymous, at 9:19 AM
@ MO
none of your business, i dont think i have to proove you anything, i know myself, my friends knows what i do etc... but i dont care about what the others think etc..
u re however reacting as if your name was saad hariri :s
it s like that gr8 sentence that gebran khalil gebran invented in the US:
dont ask what your country can do for you , but what you can do for your country.
it s a personal question that everyone has to answer and not a question that everyone must answer in the front of everyone.
about the second system, it was just a joke. i dont think they would have that kind of philantropic gesture anyway
By
Anonymous, at 12:04 PM
Post a Comment
<< Home