Khalil Says 'No Decision' to Hike Gasoline Tax, Rifi Vows to Reject Such Move

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Finance Minister Ali Hassan Khalil reassured Tuesday that “there is no decision” to hike the price of gasoline to finance a number of pressing issues, after media reports in this regard caused an uproar in the country.

“The financial issue must be addressed in a comprehensive manner and there is no decision to hike the price of gasoline,” Khalil tweeted.

“We had previously proposed a series of measures during the debate over the new wage scale and we still believe that these measures are the most efficient taxation reforms,” he added.

Separately, the minister said he believes that “all parties” will approve the full-time employment of Civil Defense volunteers during the upcoming cabinet session.

Justice Minister Ashraf Rifi meanwhile declared that he will not agree to any decree hiking taxes on gasoline.

“Enough with impoverishing people who are struggling to live and to provide bread for this children. Enough with taxes,” Rifi tweeted.

Any plan to impose new taxes on gasoline will likely fail over the objection it will face from several parties represented in the government and a coalition of public and private sector employees, al-Joumhouria daily reported on Tuesday.

Khalil told the newspaper that he will brief the cabinet on Wednesday on the country’s financial situation and will stress the importance of the participation of all parties in any decision-making on spending.

But the Syndicate Coordination Committee, a coalition of private and public school teachers and public sector employees, has warned that it could organize a strike Thursday if the cabinet, during its Wednesday session, decides to add more taxes on fuel.

Labor Minister Sejaan Qazzi of the Kataeb Party was among ministers rejecting an increase in gasoline prices, an idea that recently surfaced as a possible solution to the demands of Civil Defense volunteers who are seeking to become full-timers.

The cabinet failed last week to pass a decree to make them full-time employees over lack of financial resources.

But now that twenty liters of gasoline is selling at about LL20,000 as a result of a global slide in oil prices, some officials are mulling to slap a new tax, around LL5,000, to fund the employment of the volunteers

“We can’t approve of adding a tax every time there is a popular demand,” Qazzi told al-Joumhouria.

He called instead for a comprehensive development plan.

The Free Patriotic Movement has also rejected a tax hike.

Social Affairs Minister Rashid Derbas said, however, that he would agree to a tax hike if he was convinced by Khalil’s briefing on the need for additional resources to help the treasury.

An Nahar daily quoted ministerial sources as saying that the majority of cabinet ministers would reject adding LL5,000 on gasoline prices.

The $20 million needed to make the Civil Defense volunteers full-timers does not require a tax hike, they said.

Other projects that are worth millions of dollars had been previously approved without additional taxes, the sources added.

D.A./Y.R.

M.T.

Comments 3
Thumb marcus 09 February 2016, 07:46

The FPM rejects anything and everything. No solutions but obstruction. If the FPM stop stealing perhaps the government can finance some of its new commitments.

Thumb marcus 09 February 2016, 08:24

who is obstructing Mr? Name them?

Thumb marcus 09 February 2016, 08:28

The FPM rejected the idea of landfills, rejected the idea of export, and offered no solutions.