1) Year 2004 229 billion Lebanese pounds
2) Year 2005 337 billion Lebanese pounds
3) Year 2006 415 billion Lebanese pounds
We wish to make the following remarks:
1) We notice a spectacular increase in revenue: 40% in 2005 related to 2004, and 22% in 2006 related to 2005.
2) The first questions that come to mind are:
- What caused the increases during the two years?
- Why was the increase in 2006 less pronounced than in 2005?
3) We need to ascertain the amount of capital invested in the banks in Lebanon and earning interest and relate this figure to the tax revenue amount declared by the State.
4) The Paris III Reform Program provides for an increase of the tax on interest income in 2008 from 5% to 7% (article no.93). According to the program this would generate additional revenue of 0.5% of GDP ($100 million or 150 billion Lebanese pounds).This is an excellent move, provided that it does not deter foreign and local investors.
