Taxing Wealth: IMF Suggests Real Estate | Al Akhbar English
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It is now relevant to open a serious debate on local tax reforms. Taxes on the highest income bracket in Lebanon are some of the lowest globally and the same goes for taxes on corporations and profits. However, treasury bills, profits on the stock market, and real estate speculation are not taxes, for example.
At the same time, 80 percent of tax revenue in Lebanon comes from indirect taxes, whose actual burden falls on medium- and limited-income brackets. Around one-third of treasury expenses are used for debt servicing. This means that a very narrow segment of treasury bill-holders make tremendous gains from rent and are tax-exempt.
Does the recommendation by IMF experts to impose taxes on wealth and profits from real estate make them into organs for “socialist propaganda,” like some Lebanese pundits are saying?
