Lebanese reforms have failed affecting welfare of citizens
2022.12.18 14:32
Lebanese reforms have failed affecting welfare of citizens
Budrigannews.com – Abed Omayraat, a 62-year-old taxi driver in Beirut, is faced with a difficult decision each time a component of his aged gray Mercedes breaks: raise fares for customers whose wallets are already drained by a severe economic crisis or go into debt to import an expensive auto part.
He claims that the dilemma has become more pressing in recent months as the government of Lebanon moved to increase tariffs on imported goods by approximately tenfold in a nation that ships in more than 80% of its consumption, including the spare parts that he requires.
“My tires are done now, and you can see how worn they are. Omayraat stated, “I’m afraid the car will slide when it rains.” It is vital, “however I can’t manage the cost of it to Change them. “
The United Nations says that the fourth year of Lebanon’s economic collapse has resulted in the currency losing more than 95% of its value and leaving eight out of every ten Lebanese poor.
The state has already eliminated fuel subsidies and most medication subsidies as its foreign currency reserves diminish.
Officials claim that raising the rate at which the customs fee is calculated will increase state revenues and bring the various exchange rates closer together.
In April, the International Monetary Fund set them as one of the preconditions for Lebanon to receive a $3 billion bailout, but the lender of last resort says reforms have been too slow.
On December 1, the increase in tariffs took effect. Import charges started being determined at a conversion scale of 15,000 Lebanese pounds for every dollar rather than the old 1,507, meaning merchants abruptly needed to pay substantially more to acquire items like home machines, phones or vehicle parts.
People already struggling to make ends meet will be put under even more financial strain as a result of this.
Omayraat says numerous travelers as of now request limits to the standard 40,000 L.L. ride expense.
“Do you tell someone you want a fare of 100,000 pounds? In essence, I’m telling them: Don’t go along with me. He cannot afford it, and neither can I take him. Omayraat stated, “He can’t eat, and I won’t be able to eat.”
Rabih Fares, a northern Lebanese architect who started importing used cars when business slowed down, claimed that the new rate was forcing car dealerships to raise prices or close shop.
Fares stated, “You need to work four to five years just to be able to afford the customs rate on a car now.” He estimated that the average cost to import a used car would be 94 million Lebanese pounds, or approximately 156 times the minimum wage per month.
Revenues gathered in the 15 days since the decision went into effect showed a “huge difference,” according to the finance ministry, but figures would be ready by the end of the month, it said.
The rate was approved by Parliament in September, but it wasn’t implemented until December. This delay, according to Amin Salam, interim Economy Minister, allowed traders to buy more imports before the tariff hike, which led to higher selling prices.
“When you made the announcement three months ago, it was as if you were going to the market and telling people who didn’t want to work there: Go ahead and find a way to win. He continued, “And this is what transpired.”
He now doubts that Lebanon will carry out the necessary reforms to secure a final IMF bailout in the upcoming months.
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“As we are presently, I as I would see it don’t see it happening soon – which concerns me on the grounds that, as I said, every day of deferral is costing the nation a great many and costs individuals torment and wretchedness.”
