2026 1% VAT rise from 11% to 12%
Lebanon’s government has announced a Value Added Tax increase from 11% to 12%. This will only came into effect following Parliamentary approval.
The increase is to meet the costs of salary increases for the government employees and the army.
In addition to the VAT rise, petrol costs are increased by 25% with immediate effect. There was not change to diesel as a nod to the preferred fuel of less well off consumers.
The government restated that it is working to improve the collection of taxes and customs duties, issue collection orders for quarries, and review maritime properties.
Lebanon has attempted to raise VAT several times in recent years: a proposed 4% increase was not passed.
