Income tax on industrial exports cut in half
Draft law exempting exports from 50 percent
of income tax passes parliamentary committee
A draft law that exempts industrial exports from fifty percent of the income tax due on corporates was approved by Parliament’s finance and budget committee on Tuesday. Once the bill is ratified by Parliament tax on income generated from exports will be reduced to 7.5 percent instead of the 15 percent currently applied.
“The Association of Lebanese Industrialists (ALI) will work together with the Ministry of Industry and Trade in order to secure the bill’s approval,” said Ziad Beckdache, vice-president of ALI. Bekdache said the decision will make the industrial sector more appealing to investors: “This tax rate, 7.5 percent, is the lowest among countries which impose such taxes. Industrialists will pay less export fees, thus their revenues will increase.”
Neemat Frem, president of ALI said reducing the income tax on exports is not enough: “We have called for the full-exemption of industrial exports from the tax.” Bekdache echoed Frem’s position. He said that the government needs to take several steps to support industry, starting with resolving the severe power cuts. “(The State) should support the admission of local industries in exhibitions abroad, as well as activate the role of the commercial attachés at our embassies abroad,” said Bekdache.
Reported by Rania Ghanem
Date Posted: Jul 31, 2012