Update: budget passed in parliament Jan 2024
The Lebanese 2024 Budget was approved by parliament on 26 January. It has not yet been published in its revised format, but looks to have removed a proposed VAT increase to 15%
Draft 2024 budget includes 4% increase in the standard VAT rate from 11% to 15%
Plans earlier this month to hike Lebanese VAT by 1% to 12% were scrapped; the emergency rate hike was changed from 14% to 15%. This rise would have been spread over two years.
Whilst the 2023 budget still remains unapproved, it’s expected that parliament will go straight to the 2024 budget in the Autumn sitting.
Lebanon has been in deep economic crisis for over four years. GDP has shrunk by over 40% in this period and inflation gone into triple digits. Lebanon is failed to meet economic reform targets agreed with the IMF, and therefore failed to qualify for $3 billion in bail out loans.
A hike to 15% was part of settling the latest round of funding from the IMF.
Check our global VAT rates tracker, with over 300 countries, states, provinces and dependency territories.
Exports and international transport services are still zero rated.
A ranges of supplies will remain exempted:
- Education
- Basic foodstuffs
- Transfer of real estate
- Newspapers and books
- Post
- Diesel oil
- Financial services