Lebanon tightens tax collection and security fees to boost state revenue

Report by Bassam Abou Zeid, English adaptation by Mariella Succar

Lebanon’s ongoing financial and economic crises have further strained the state, its institutions, and employees, particularly regarding salaries, wages, and the provision of essential services. As a result, the country is in a constant search for revenue sources that can meet its needs while maintaining a balance between expenditures and income.

One key measure is the strict collection of corporate taxes. Companies are required to submit their value-added tax (VAT) declarations by October 20 and payroll tax declarations by October 15. The Ministry of Finance emphasized that, unlike in previous years, no extensions will be granted, as no circumstances currently justify a delay.

Companies that comply with the deadlines and maintain proper accounting records will face no penalties. However, late filings incur a 10% monthly fine on the declared amount, in addition to a 3% collection fee.

This strict enforcement is expected to generate tens of millions of dollars in liquidity for the state treasury, supporting the 2026 budget plan, which aims for a balanced budget. Timely tax collection is considered crucial for maintaining equilibrium between revenues and expenditures.

In parallel, the Internal Security Forces (ISF) have increased revenue through service fees for activities such as event security at horse races, sports facilities, schools, auditoriums, theaters, and private institutions, as well as cash transport and institutional protection. The Cabinet approved raising the fees for these services from LBP 1,500 per U.S. dollar to LBP 89,500 per dollar.

The revenue generated will be used to improve the living and social conditions of ISF personnel and officers.