SAWT BEIRUT INTERNATIONAL

| 8 February 2023, Wednesday |

Mikati government accomplishments include raising customs’ fees

According to President Najib Mikati, a new decision regarding has been made and will be unveiled during the first session of the Council of Ministers.

As a result, the Lebanese should get ready for a rise in the customs dollar from 1,500 Lebanese pounds to 12 LBP or even more, in order to be competitive with the price of the dollar on an exchange platform.

All because the government wants to finance the salary increases and transportation allowances that went into effect at the beginning of the month, and so far it hasn’t found a way to do so other than raising the customs dollar, despite Mikati knowing that it will reduce imports because the purchasing power of 25% of the citizens will fall to 10%.

The cost of customs charges will vary. Goods originating from Arab nations, as well as those originating from the European Union and accompanied by a European certificate of origin, are exempt from tariffs under the Arab Facilitation Agreement.

The rest of the nations’ commodities are subject to tariffs, and because the United States, China, and Turkey are the major exporters to Lebanon, all items from these countries will see price increases.

Fees will also vary depending on the type of item, ranging from 5% to 25%, with some goods, such as clothing and shoes, subject to a 100% fee to preserve the national industry.

If the customs dollar is raised to 12,000, it is estimated that the prices of items would rise by 20 to 25 percent as a result of the overall expenses.
The most worrisome aspect is that the money that will be injected into the economy through salary and transportation allowance increases, i.e. 10,000 billion LBP, will have no effect following the price increase and rise in deflation.

And the great catastrophe is that, under the shadow of the state, the great gift will be to the smugglers, who are prepared to boost their activity through illegal and even legal crossings, strengthening the black economy at the expense of the white economy.

In any case, the monopoly began in merchant warehouses to obtain profits, waiting for the signal to be given. As for now, let us pray because only God knows what we are gonna face when the Council approves the decision.

    Source:
  • Sawt Beirut International