As regional tensions rise, Beirut unveils costly salary bonuses while funding them through new taxes on the public.
Lebanon’s government has approved what it calls a major relief step: six additional monthly salaries for public sector employees and retirees. Officials estimate the move will cost roughly $800 million annually.
But the funding plan is already sparking backlash. To finance the bonuses, the government intends to raise VAT to 12%, impose a 300,000 Lebanese pound levy (about $3.30) on every 20-liter fuel tank, and increase container fees at ports.
Economic experts argue the numbers don’t add up. According to critics, the state plans to collect nearly $1 billion in new taxes—significantly more than the projected cost of the wage supplements. In their view, the salary boost is a political maneuver designed to soften public anger while using rising living costs to plug massive holes in Lebanon’s shattered budget.