Middle East Economic Survey


No 50



IMF Says Lebanon Can No Longer Afford Fuel Subsidy

The IMF has warned the Lebanese government that it can no longer afford to subsidize petroleum product prices and has proposed the institution of higher taxes on gasoline. The VAT system remains the most effective tax instrument available to the authorities, and the taxation of gasoline could be revisited, as the state is not in a position to absorb future oil price shocks. In...