Berri, Saniora Discuss New Wage Scale as Latter Proposes Increase in VAT to Resolve Dispute
Speaker Nabih Berri revealed that an agreement had been reached on the majority of the details of the new wage scale, adding that the Mustaqbal bloc did not attend Thursday's legislative session aimed at addressing the pay hike due to its commitment to its allies the Lebanese Forces and Kataeb blocs, reported the daily An Nahar on Friday.
He told his visitors that an agreement had been reached over the most “minute details” of the new wage scale draft-law, revealing that the Syndicate Coordination Committee had voiced reservations over implementing the raise in installments and increasing the Value Added Tax as a way to fund it.
The speaker had held talks on Thursday with head of the Mustaqbal bloc MP Fouad Saniora on the wage scale.
Saniora told An Nahar that raising the VAT by one percent will resolve the dispute over the scale.
He explained that the revenues generated by the tax are “the most important constant source of income in Lebanon as opposed to other sources of revenue.”
“The revenues will be immediate and it will allow for the raise in salaries,” he added.
Moreover, the former premier hailed Berri for deciding to keep parliament sessions open-ended until the wage scale is approved.
“We must all bear our responsibilities together and set straight our financial affairs,” stressed Saniora.
The SCC, a coalition of private and public school teachers and public sector employees, had voiced on Wednesday its rejection of a raise in the VAT, saying it will impede the spending of the poor and people of limited income.
It demanded that the wage scale not be implemented at the expense of the poor.
The parliament once again failed on Thursday in approving the controversial pay hike for the public sector as the SCC warned officials not to politicize the issue.
March 14 alliance's Christian MPs and the Mustaqbal bloc have been boycotting parliamentary sessions aimed at discussing the draft-law.
Parliamentary blocs have expressed their support for the employees' rights but have warned that Lebanon's ailing economy would suffer if the total funding was not reduced from LL2.8 trillion ($1.9 billion) to LL1.8 trillion ($1.2 billion).
They have also disagreed on how to raise taxes to fund the scale over fears of inflation and its affect on the poor.
M.T.
H.K.
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