Parliament Permanently Lifts VAT on Red and Green Diesel
Parliament approved to permanently lift the Value Added Tax on red and green diesel on Thursday, paving way for around a 10 percent drop in their prices.
The approval by the majority of votes came despite reservations expressed by Energy Minister Jebran Bassil.
Parliament’s finance and budget committee endorsed the draft law proposed by MP Nehmatallah Abi Nasr last month to permanently eliminate VAT on the two commodities.
The tax cut would help lower production costs on agricultural products and bread as well as decrease energy bills on households.
A red diesel scandal rocked Lebanon last month after shortages in the household heating fuel exposed deals made on January 18 - the last day of the government’s one-month subsidy of LL3,000 per jerry can - that included the sale of huge amounts of red diesel to oil distribution companies.
The companies have reportedly made millions of dollars in profits after selling an alleged 8 million liters at a nonsubsidized price after the end of the subsidy period.
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