Municipal fee hikes in Lebanon: Big cities gain, small towns struggle

Report by Theresia Rahme, English Adaptation by Mariella Succar

No municipality in Lebanon can now change fees at will, as happened in 2022 and 2023. During those years, the economic crisis and the collapse of the LBP led municipalities to impose fees independently, trying to balance revenues and expenses.

In 2024, the government unified municipal fees and increased them tenfold compared to pre-crisis levels. In 2025, fees rose another 50%. The only exception is a single type of fee: property and building fees, for which the law allows municipalities some flexibility in setting rates.

This provision gives larger municipalities, or those with significant commercial activity, the potential to generate higher revenues than smaller municipalities, where property values and economic activity are lower. This discrepancy directly affects municipal operations, especially in smaller towns, which may struggle to provide essential services.

For example, a small municipality had revenues of approximately $105,000 in 2018. By 2024, after fee increases, its revenues had dropped to about $14,900—far below pre-crisis levels.

Ultimately, raising fees alone is ineffective if it does not translate into better basic services such as roads, street lighting, waste management, water, and investment projects. Residents in larger municipalities with commercial activity should expect improved services, while smaller municipalities must strategically allocate limited revenues to meet essential needs.