Protesters Block Beirut Roads as Cabinet Greenlights New Taxes Fuel hikes and other levies spark demonstrations across Beirut after Lebanon’s Cabinet approved taxes intended to fund public sector salary increases.
On Monday, the Cabinet endorsed a levy of 300,000 Lebanese pounds (roughly $3.30) for every 20 liters (about 5.3 gallons) of gasoline. Diesel was exempted, reflecting its central role for many in Lebanon who rely on private generators to compensate for the country’s chronic electricity shortages.
Additionally, the government proposed raising the value-added tax on taxed goods from 11% to 12%, a measure that still awaits parliamentary approval.
The tax package is aimed at financing wage and pension enhancements for public employees, who have seen their purchasing power erode since the 2019 currency collapse. Information Minister Paul Morcos estimated the pay increases would cost about $800 million.
Lebanon, despite sitting atop substantial gold reserves, endures persistent inflation and widespread corruption. The country also faced roughly $11 billion in damages from the 2024 conflict between Israel and Hezbollah.
Fuel protests escalate
Among those voicing frustration were taxi drivers who blocked a key Beirut corridor into the city center. Ghayath Saadeh, speaking for the group, said leaders treat taxi drivers as disposable and warned that they would keep roadblocks in place if demands aren’t addressed, noting that everything is getting pricier ahead of Ramadan.
Historical context shows that proposed taxes in 2019, including a monthly internet-call fee for services like WhatsApp, triggered mass protests that paralyzed the country for months. Demonstrators have long demanded an end to the entrenched sectarian power-sharing system, an overhaul of a broken infrastructure, and accountability from leaders widely blamed for corruption and mismanagement.
International pressure for economic reform has persisted for years, yet tangible progress remains limited.
Security and disarmament discussions
In a separate development on Monday, the cabinet reviewed a Lebanese Army report on disarming non-state militant groups, including Hezbollah. The army says it completed the first phase in southern Lebanon near the Litani River, close to Israel, with a second phase planned for areas south of the Litani to the Awali river, encompassing Sidon.
Morcos noted that the second phase could take about four months but may extend due to resource constraints, ongoing Israeli operations, and on-the-ground obstacles.
This disarmament process follows a U.S.-brokered ceasefire that nominally ended the Hezbollah-Israel conflict in November 2024. Since then, Israel has accused Hezbollah of regrouping and has conducted frequent strikes inside Lebanon, while Hezbollah maintains that disarmament is limited to the south only until Israel ceases attacks and withdraws from Lebanese soil.
Source note: This report includes contributions from Associated Press writer Hussein Malla.
