Protesters block Beirut roads after Cabinet okays new taxes

Beirut: Protesters blocked main roads in and around Beirut on Tuesday after Lebanon’s Cabinet approved new taxes that raise fuel prices and other products to fund public pay hikes.

The Cabinet approved a tax of 300,000 Lebanese pounds (about USD 3.30) on every 20 litres (5.3 gallons) of gasoline on Monday. Diesel fuel was exempted from the new tax, as most in Lebanon depend on it to run private generators to make up for severe shortages in state electricity.

The government also agreed to increase the value-added tax on all products already subject to the levy from 11 to 12 per cent, which the parliament still has to approve.

The tax increases are to support raises and pension boosts of public employees, after wages lost value in the 2019 currency collapse, giving them the equivalent of an additional six months’ salary. Information Minister Paul Morcos said the pay increases were estimated to cost about USD 800 million.

Though the Mediterranean country sits on one of the largest gold reserves in the Middle East, it suffers ongoing inflation and widespread corruption. The cash-strapped country also suffered about USD 11 billion in damages in the 2024 war between Israel and the Hezbollah militant group. Ghayath Saadeh, one of a group of taxi drivers who blocked a main road leading into downtown Beirut, said the country’s leaders “consider us taxi drivers to be garbage.”

“Everything is getting more expensive, food and drinks, and Ramadan is coming,” he said. “We will block all the roads, God willing, if they don’t respond to us.”

When the Lebanese government proposed new taxes in 2019, including a $6 monthly fee for using internet calls through services such as WhatsApp, mass protests broke out that paralysed the country for months. Demonstrators called for the country’s leaders to step down over widespread corruption, government paralysis and failing infrastructure, and for an end to the country’s sectarian power-sharing system.

Lebanon has been under international pressure to make financial reforms for years, but has so far made little progress. wAlso Monday, the cabinet received a report from the Lebanese army on its progress on a plan to disarm non-state militant groups in the country,including Hezbollah.