“There is no longer a middle class.” Lebanese people scream about the reality of new taxes and stable wages economy

Lebanese citizens expressed their fears about the repercussions of the new taxes recently imposed by the government, stressing that they will increase the burden of living in light of the continuing economic crisis, high prices, and stable wages.

Citizens who spoke to Al Jazeera Mubasher believed that any tax increases at the current stage will lead to more inflation, a decline in purchasing power, and exacerbate the suffering of various segments of society, especially those with limited income.

One of the citizens began his speech by pointing out that depositors continue to suffer from banking restrictions, saying that banks only allow him to withdraw $400 a month from his deposited funds.

He added: “Every day, we are at the bank and they give us $400 a month. How can $400 be enough? And we are citizens. We put our Egyptians in the bank. What do we want to settle?”

One citizen believed that the effects of the new taxes would not be limited to a specific group, but rather would affect all Lebanese through an increase in the prices of goods, services, and fuel.

She said: “The new tax imposed by the state will affect the whole world, not just me. If it is on prices, goods, gasoline, everything will be affected, and pensions after that will be the same. I mean, a lot of citizens will be affected by this thing. Not only are they raising pensions for the world, no one can live with this life and the situation we are in.”

Decree No. 3214, which was published in the latest issue of the Official Gazette, sparked a wave of controversy in economic and financial circles in Lebanon, after it approved an increase in the tax on waste-producing materials within the framework of amending environmental fees.

According to circulating estimates, the tax increase may raise the prices of Lebanese products by a rate ranging between 1% and 3%, while the fuel sector is one of the sectors most affected by the decision, with expectations that the price of a can of gasoline, diesel and gas will rise by about 40 thousand Lebanese pounds (about 0.45 dollars), which raises fears that the increases will be transferred to various goods and services as a result of the rise in transportation and production costs.

Huge price rise

For his part, one of the Lebanese coming from abroad said that he noticed a significant change in prices compared to his previous visit two years ago, noting that the prices of fuel and foodstuffs had clearly increased.

He added: “As I told you, I am coming from abroad. Two years ago we were here. There is a big difference in the prices of everything, whether it is gasoline or whether it is in the supermarket goods or not. For us, it may not have much impact, but for our friends who live here and the world that lives here, it does not have much impact. The pensions are not commensurate with the high prices that have become, so it certainly affects them terribly.”

Another citizen believed that imposing additional taxes would lead to a further decline in market activity and purchases, considering that any increase in the cost of fuel would be directly reflected in the prices of various commodities.

He said: “With regard to the new taxes that started… those that were present, those that increased them, and those that are now going to increase them, in general the world cannot go on without taxes. With new taxes, everything will definitely go down. Purchases will go down in everything, not just gasoline… and may God help the world with what is happening to them.”

One of the speakers stressed that the current economic conditions do not allow for the imposition of new taxes, in light of weak investments, continued banking restrictions, and declining economic activity.

He said: “I swear to God, in my opinion, this situation that we are experiencing is welcome, the exhausting economic situation… I don’t find that at this time they should pay taxes, at these moments, because without something we cannot afford the high prices, the pensions are low.”

He added that taxes on basic foodstuffs will double the suffering of citizens, calling for taxes to be limited to luxury goods or materials that harm the environment, saying: “It is forbidden for them to impose taxes at this time… on basic food items. This is a disaster for the world.”

He also considered that the middle class was eroded by the crisis, adding: “There is no longer a middle class, there is a poor class and a rich class… The rich class is not affected, but we are the ones who are affected.”