New Fuel Tax
New Fuel Tax

LEBANON - Protesters blocked main roads in and around Beirut on Tuesday after Lebanon’s Cabinet approved new taxes that raise fuel prices and other products to fund public pay hikes.

The Cabinet approved a tax of 300,000 Lebanese pounds (about $3.30) on every 20 liters (5.3 gallons) of gasoline on Monday. Diesel fuel was exempted from the new tax, as most in Lebanon depend on it to run private generators to make up for severe shortages in state electricity.

The government also agreed to increase the value-added tax on all products already subject to the levy from 11 to 12%, which the parliament still has to approve, The Associated Press said.

The tax increases are to support raises and pension boosts of public employees, after wages lost value in the 2019 currency collapse, giving them the equivalent of an additional six months’ salary. Information Minister Paul Morcos said the pay increases were estimated to cost about $800 million.