Lebanon's government has published its 2026 budget, allocating 538.4 trillion LBP across expanded tax measures, infrastructure projects, and social spending. The budget introduces new levies on currency traders and importers, along with incentives for electric vehicles and support for key sectors, while maintaining a reported balanced fiscal position.

RF Report

Lebanon’s Ministry of Finance has published the Citizen Budget 2026 on 14 April 2026, presenting a simplified overview of the Budget Law for 2026.

The budget law was approved by Parliament in late January 2026 and enacted on 10 February 2026. It introduces revised fiscal estimates alongside a broad package of tax, fee, and administrative reforms aimed at strengthening public revenues, improving compliance and modernising key sectors of the economy.

Budget overview

The 2026 budget sets total revenues and expenditures at LBP 538,415 billion (approximately USD 6 billion, based on an exchange rate of LBP 89,500 per USD), representing a 21% increase compared to the 2025 budget. The budget is presented as balanced, with a reported deficit of 0%, excluding treasury advances and related balances.

Tax revenues are estimated at around LBP 439.6 trillion, while non-tax revenues are projected at approximately LBP 98.8 trillion.

On the expenditure side, current spending amounts to around  LBP 474 trillion, including LBP 127.4 trillion for salaries and allowances and LBP 146.7 trillion for social benefits. Capital expenditure is set at approximately LBP 64.4 trillion, mainly directed towards infrastructure and fixed assets.

Key tax and revenue measures

The budget introduces a range of tax changes, fees, and enforcement measures to strengthen revenue:

VAT adjustments

  • Deduction of Value Added Tax (VAT) is permitted on fixed assets and services linked to taxable economic activities.
  • VAT deductions on passenger cars are capped at USD 30000, with exemptions for rental, public transport, and high-end hotel vehicles.
  • Certain sectors (pharmaceutical manufacturing, healthcare, and basic food production) may request full VAT refunds on fixed assets.

Exceptional tax on Sayrafa profits

  • A 17% additional tax applies to profits exceeding USD 100000 generated through transactions on the Central Bank’s “Sayrafa” platform, excluding salaries and wages.

Customs prepayment

  • A 1.5% prepayment on import value is required for taxpayers who failed to file tax or VAT returns over the previous three years.

Passport and residency fees

  • Lebanese passports:
    • LBP 6,000,000 (5 years)
    • LBP 10,000,000 (10 years)
  • Residency cards:
    •  LBP 72,000,000 annually for Category II work permit holders and their families

Environmental and resource fees

  • Quarries and crushers:
    • Licence fee: LBP 2.3 billion
    • Extraction fee:  LBP 75,000 per cubic metre
  • Motorised pleasure yachts:
    • Annual fees range from LBP 2.5 million to LBP 22 million depending on engine power
  • Foreign trucks:
    • USD 50 transit fee (empty or loaded), subject to reciprocity exemptions

Increased fines

  • Fixed fines and minimum penalties increased 25-fold
  • Late registration of births or marriages (after 30 days): LBP 1,000,000

Exemptions and support measures

Persons with disabilities

  • Customs and tax exemptions for:
    • Individual transport vehicles (up to USD 25,000)
    • Collective transport vehicles (up to USD 50,000)

Eco-friendly vehicles

  • Fully electric vehicles: 100% exemption from customs and internal consumption taxes
  • Hybrid vehicles: 80% exemption
  • First-time registration and mechanical fees reduced by 70%

Fine reductions

  • 85% reduction on fines owed to the state or municipalities if paid within three months of publication

Exit fee exemptions

  • Applicable to official guests, diplomatic staff (reciprocity basis), UN/international organisation employees, and children under two years old

Increased penalties for UBO reporting mon-compliance

The penalty framework applies across different categories of taxpayers and varies depending on the nature of the infringement, including late submission, incorrect or incomplete information, failure to maintain records, failure to update information, and failure to provide required details.

 

The detailed structure of penalties is set out below:

Violation type Joint-stock companies (SAL) Partnerships / SARL / Tax-exempt entities Individuals and other taxpayers
Late submission of UBO declaration – no change in UBO information LBP 300 million LBP 200 million LBP 25 million
Late submission of UBO declaration – change in UBO information LBP 600 million LBP 400 million LBP 50 million
Submission of incomplete or incorrect UBO information LBP 750 million LBP 500 million LBP 50 million
Failure to maintain updated UBO records LBP 750 million LBP 500 million LBP 50 million
Failure to update UBO Information within one month of a change LBP 750 million LBP 500 million LBP 50 million
Failure to provide required information (imposed on partners and shareholders) — — LBP 350 million

Except for the Sayrafa platform profit threshold, the measures generally take effect as of 10 February 2026, while the UBO penalties are applicable from 1 January 2026.