Lebanon sees 28 percent rise in government revenues

[Dry Ice]

By Regional Press Network (RPN)

Saturday, June 27, 2009

Published by Daily Star


BEIRUT: Lebanon's fiscal performance up to the end of April showed a broad increase in the government's revenues by 28 percent to LBP 4.2 trillion or $2.8 billion in the first four months of 2009 compared to LBP 3.3 trillion or $2.2 billion in the same period in 2008. The spike in revenues was driven to a large part by a 195 percent leap in customs revenues and by a solid 28 percent increase in collected income tax.

At $1.87 billion, tax revenue accounted for over 68 percent of fiscal revenue in the first four months. In parallel, non-tax revenues grew 36 percent to $800 million.

With exception of a 4 percent contraction in revenue from real-estate registration fees, all tax brackets generated higher fiscal revenues. Income tax revenue, increasing by $78 million or 28 percent through the end of April to $355 million, was a major source of new funds for the government.

Among the sources of income tax revenue, taxes on wages and salaries contributed the biggest amount, rising by 42 percent year-on-year to $123 million for the first four months, in a sign of the improving labor market.

The second largest contribution to income tax revenues came from the recently-introduced 5 percent tax on interest which brought in $113 million through April 2009, an additional $16 million or 16 percent compared to 2008. Revenues from taxes on profits and capital gains rose 23 percent and 33 percent to $94 million and $21 million respectively.

[dodzi]

How about the loans the government is getting from "friendly" countries? Are these also counted in the government revenues?

[Dry Ice]

Originally Posted by dodzi

How about the loans the government is getting from "friendly" countries? Are these also counted in the government revenues?

Are you being sarcastic?

[Abotareq93]

Originally Posted by Dry Ice

By Regional Press Network (RPN)

Saturday, June 27, 2009

Published by Daily Star


BEIRUT: Lebanon's fiscal performance up to the end of April showed a broad increase in the government's revenues by 28 percent to LBP 4.2 trillion or $2.8 billion in the first four months of 2009 compared to LBP 3.3 trillion or $2.2 billion in the same period in 2008. The spike in revenues was driven to a large part by a 195 percent leap in customs revenues and by a solid 28 percent increase in collected income tax.

At $1.87 billion, tax revenue accounted for over 68 percent of fiscal revenue in the first four months. In parallel, non-tax revenues grew 36 percent to $800 million.

With exception of a 4 percent contraction in revenue from real-estate registration fees, all tax brackets generated higher fiscal revenues. Income tax revenue, increasing by $78 million or 28 percent through the end of April to $355 million, was a major source of new funds for the government.

Among the sources of income tax revenue, taxes on wages and salaries contributed the biggest amount, rising by 42 percent year-on-year to $123 million for the first four months, in a sign of the improving labor market.

The second largest contribution to income tax revenues came from the recently-introduced 5 percent tax on interest which brought in $113 million through April 2009, an additional $16 million or 16 percent compared to 2008. Revenues from taxes on profits and capital gains rose 23 percent and 33 percent to $94 million and $21 million respectively.

So after all, the national unity government and the tilt mo3attel weren't that bad!!!

[Abou Sandal]

Tayyib what's the use of having revenues even double if they end up being stolen anyway.

La Daman
La Tabebeh
La Shaykhoukha
La Maderiss Rassmiyeh
La Kahraba
La Mayy
La Mjerir
La Tor2at
La Mazebil
La Masse7at Khadra
La B7our
La Jbeil

The list is so long and depressing...I'm thinking of buying a camping car and trying to get away from all this wild (un)civilization. It's too hopeless.

[Negative]

Originally Posted by Abou Sandal

Tayyib what's the use of having revenues even double if they end up being stolen anyway.

La Daman
La Tabebeh
La Shaykhoukha
La Maderiss Rassmiyeh
La Kahraba
La Mayy
La Mjerir
La Tor2at
La Mazebil
La Masse7at Khadra
La B7our
La Jbeil

The list is so long and depressing...I'm thinking of buying a camping car and trying to get away from all this wild (un)civilization. It's too hopeless.

Look at the bright side, we're better than Zimbabwe.... I guess.

[Robin Hood]

Originally Posted by Abou Sandal

Tayyib what's the use of having revenues even double if they end up being stolen anyway.

La Daman
La Tabebeh
La Shaykhoukha
La Maderiss Rassmiyeh
La Kahraba
La Mayy
La Mjerir
La Tor2at
La Mazebil
La Masse7at Khadra
La B7our
La Jbeil

The list is so long and depressing...I'm thinking of buying a camping car and trying to get away from all this wild (un)civilization. It's too hopeless.

Get yourself a visa and leave Lebanon, that's the only solution.

[Danny Z]

The GDP calculated from the income perspective is

GDP = Compensation of employees + Gross operating surplus + Gross mixed income + Taxes less subsidies on production and imports

so the last items Taxes less subsidies especially the taxes part is taken from the gross operating surplus, or compensation of employees, which at the end of the line doesn't change anything in GDP... Bottom line government income doesn't affect the GDP unless the part taxes just vanishes out of the blue then GDP will decrease.
So the next question would be how come the government income (i.e taxes less subsidies) increases by 28% and GDP only by 2-3%?

[cedarheart]

all these extra revenues are from income taxes, capital gain taxes, and tax on interest. So it's all money from Lebanese's pockets.
-Besides the 500$ for their vote, what are lebanese getting in return for all these taxes?
-How come the deficit is not shrinking if the revenues are increasing?
-What are the plan and budget for these extra revenues?

[dodzi]

Originally Posted by Dry Ice

Are you being sarcastic?

Absolutely not! I remember that they talked about the same kind of numbers last year, but they said that the increase was mostly due to the loans received!