From garbage crisis to new tax: Lebanon imposes new import levy to fund waste management

Report by Theresia Rahme, English adaptation by Yasmine Jaroudi

Lebanon is set to impose a new levy on imported goods that generate waste after use, in a move to tackle the country's long-running waste management crisis and help reduce the Independent Municipal Fund's financial deficit.

For years, Lebanon has struggled with recurring waste crises, marked by overflowing landfills and garbage piling up across the country. 

At the same time, municipalities have faced chronic funding shortages as the Independent Municipal Fund, which is financed through taxes and fees, has suffered from declining revenues due to weak tax collection, currency depreciation, and the country's prolonged economic crisis.

According to Finance Minister Yassine Jaber, the deficit in the Independent Municipal Fund has exceeded $400 million, prompting authorities to introduce what they describe as a "cost recovery" mechanism.

Under the proposal, imported goods that eventually become waste or contribute to pollution will be subject to a levy ranging from 1% to 3%, depending on the type of product and the amount of waste it is expected to generate.

The measure will also apply to fuel products. Based on the proposed rates, the price of gasoline would increase by about 31 cents per unit, while diesel would rise by approximately 33 cents.

Revenue generated from the new levy would be distributed across three main areas. 

Thirty-five percent would be allocated to reducing the deficit in the Independent Municipal Fund, 50% would finance waste management operations, including landfills and treatment facilities, and the remaining 15% would support the establishment and operation of small-scale sorting and waste treatment plants across different regions.

Officials say the measure is intended to provide a sustainable source of funding for scientific waste management solutions while addressing the long-standing financial shortfall facing municipalities.