Khalil Aims at Replacing Customs with Tax on Consumption

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Finance Minister Ali Hassan Khalil revealed on Friday that he is mulling a long-term “revolutionary idea” to terminate customs and replace it with tax on consumption, except on national industries.

“I know those who are corrupt in name... Their turn will come,” Khalil said in comments published in As Safir newspaper.

Khalil has pledged recently to crackdown on corruption at customs agencies at various land and air border-crossings, noting that corruption has cost the state around 1.2 billion dollars.

Other estimates have placed this number at at least 700 million dollars annually.

The finance ministry, according to the daily, is establishing a system that directly connects the Directorate General of Customs, the Directorate of Imports and that of the Value Added Tax (VAT) to reveal violations and specify phantom firms.

Khalil told As Safir that he is preparing meanwhile for short and medium-term measures to organize and reveal corruption at the customs.

“The imported goods will be thoroughly examined,” he stressed.

Corrupt officials are reportedly working at scamming customs at Beirut Port, are manipulating manipulate fees, forging documents, and exercising other illegal activity.

Others work on smuggling goods from land border-crossings with Syria, in cooperation with Syrian regime forces and even their rivals.

At the Rafik Hariri International Airport, the corrupt groups are work on facilitating the entry of goods that have not been granted authorization by forging customs documents.

These goods are therefore not subject to inspection to determine whether they meet quality standards.

Given this reality, the minister had carried out a reshuffle at customs agencies, targeting 36 auditors, 34 officers, and 845 workers. And he is reportedly determined to carry out routine reshuffles once every three months after 17 officials were referred to the judiciary for committing violations.

H.K.

G.K.

Comments 14
Thumb justin 13 February 2015, 09:59

I think in principle it might sound like a plausible idea but in reality it will be a disaster. Implementation would require strict fiscal controls, clear processes to monitor importers, vendors and wholesalers otherwise selling under the table without actual records will make it a nightmare and result in more losses for the treasury. Good Luck

Thumb FrenchEagle 13 February 2015, 10:28

They already try that when lebanon was planning to apply to WTO, but some mafias, (IE Hariri, Kettanneh, Fattal, and the 12 others major financial families etc...) made everything to make it failing as it was also planned to open the lebanese market to competitors.

Default-user-icon shia-awl (Guest) 13 February 2015, 12:01

well said @Frencheagle

Thumb FrenchEagle 13 February 2015, 10:28

They already try that when lebanon was planning to apply to WTO, but some mafias, (IE Hariri, Kettanneh, Fattal, and the 12 others major financial families etc...) made everything to make it failing as it was also planned to open the lebanese market to competitors.

Thumb cedars2 13 February 2015, 10:33

Helllloooo!!!! All those brokers and middle men either belong or are protected by HA and Amal! Have they finally figured out a better way of ripping off the Lebanese tax payer?? Times are hard I guess and now they want to cut out the middle man.
"intelligent people are too smart to become politicians that's why we are controlled by idiots".

Default-user-icon Import - Hezport (Guest) 13 February 2015, 11:48

Khalil is making it difficult for mafias other than Hezbollah to get a share of the pie!

Same mafia war when they wanted to block illegal phone import.

Hezbollah is the number one illegal trafficking mafia in town. Suffices to say they illegally import and export weapons and human beings (terrorists and fighters) without declaring them. No need to mention drugs !

Why shouldn't Hezbollah pay an import tax on their illegal weapons ? Why don't they declare them to the Lebanese state ? That alone is ripping off the state !

Thumb cedars2 13 February 2015, 10:37

Plus I know for a fact that their brokers are present at every government institution taking bribes for any required transaction. This is exactly what a coconut republic looks like.

Missing humble 13 February 2015, 10:56

Ebola is a disease. They are eating the whole country. At worst they will be creating their own Governorate.

Missing humble 13 February 2015, 11:07

The Governorate of Nabatiyeh will be linked to Iran through Kuneitra region and Iraq. All future wars will not be against zionists but between Shiistan (Persian empire) and Arabistan, Which will be surrounded from all sides by Shiistan.
Both Shiistan and Arabistan are trying to win the zionists on their side.

Thumb _mowaten_ 13 February 2015, 12:40

No need to deport "Houthians", they are already all in Yemen. As for you, and your "refugee" friends, if you cannot respect the people of the countries you live in, something can certainly be arranged to have you taken elsewhere.

Thumb _mowaten_ 13 February 2015, 12:45

“I know those who are corrupt in name... Their turn will come,” Khalil said

Can't wait. Minister Khalil, please ignore their political backers and don't hesitate to crack down on them. We've already been stolen hundreds of billions of $$ by the saudi gang, enough is enough.

Thumb _mowaten_ 13 February 2015, 14:24

You said it, and that's exactly what they are: tales.
Besides your obvious sectarianism discredits you from being credible in any way, you're blind and irrational, only motivated by your sectarian hatred. I pity people like you, but let's face it: your case is hopeless, only euthanasia can save you.

Thumb amatoury114 13 February 2015, 14:30

Mr Khalil, you should announce the names and stop this mascarrade, everybody knows who controls the port and the airport...as for you mou watieh low life, you are dirt , you don't deserve the air you are breathing, yo are A LOW LIFE..saudi gang sole? are u out of your mind? do you even think before blabbing ....idiot

Thumb lebanon_first 13 February 2015, 14:46

this project to clean customs is to feed the press. I dont think it will lead anywhere. And if it does, than I give kudos to Khalil.

Imagine, cleaning Brital, cleaning customs... we might be getting somewhere in our beloved country...