Updated:
Pollution tax put on hold

Cabinet reacts in emergency meeting

The Council of Minister held an emergency meeting to put on hold the fee on polluting products it had published in the Official Gazette last week.

In a statement, the government said that given the current living conditions, economic situation, and the repercussions of the war, and after deliberation, the Cabinet decided to suspend the implementation of the decree pending a review of the schedule of Customs rates.

The decree had introduced a one to three percent environmental tax on waste-generating products. Immediate backlash from business and labor sectors triggered widespread public concern over its inflationary impact. The decree was to be levied on 98 categories of imported and manufactured goods. The targeted items include food products, manufactured goods, alcohol, electrical appliances, detergents, and perfumes. The specific tax rate is determined by the volume of waste generated by the product.

Importers and Labor Unions
The Syndicates of Food Importers issued a warning following the publication, stating that the it will lead to a direct and immediate increase in the prices of all imported goods, especially that the tax targets such a wide product spectrum. The General Confederation of Labor Unions also protested the decision. It warned of immediate negative repercussions on the prices of basic commodities, urging a reconsideration of the tax’s timing and impact on consumers.

Funding waste management
Revenues generated from this tax will be directed exclusively to finance the budget of the National Authority for Solid Waste Management. The money will be used to fund sorting and treatment projects across Lebanese territories. It will not go into the State’s general treasury.

Polluter pays
The government had framed the levy as a direct application of the ‘polluter pays’ principle. Shifting environmental costs to the producing or importing sectors relieves the financial burden on the State. It views it as a foundational step toward more sustainable waste management policies.