Lebanon’s tax hikes draw anger from economically frustrated public

Al Jazeera

February 23, 2026

AI-Generated Deep Dive Summary

Lebanon’s Prime Minister Nawaf Salam has sparked widespread anger and frustration by announcing hikes in petrol taxes and value-added taxes (VAT), with critics calling the measures regressive and harmful to an already struggling population. The decision has led to protests, including taxi drivers blocking roads and small gatherings of demonstrators expressing their discontent. Many Lebanese view the tax increases as another indignity, adding to existing challenges like economic instability, near-daily Israeli attacks, and a collapsed 2024 ceasefire agreement. The government defended the tax hikes, arguing they are necessary to fund salaries and pensions for state employees and retirees. Prime Minister Salam stated that these were "exceptional measures" aimed at securing financial resources while working toward reforming the tax system. However, critics, including some ministers and analysts, have expressed concerns about the regressive nature of VAT increases, which disproportionately affect lower-income individuals. The move has drawn comparisons to the 2019 protests that erupted over similar tax policies, leading to the collapse of the government at the time. While last week’s protests were on a smaller scale, they reflect deep-seated frustration with decades of economic mismanagement and political corruption. The announcement has also reignited debates about Lebanon’s sectarian system, which many believe prevents meaningful reforms. The situation highlights the fragility of Lebanon’s economy and the growing disconnect between the government and its people. With more than 50% of the budget allocated to salaries, the government faces immense pressure to balance financial obligations while addressing public grievances. The response to these tax hikes will be closely watched, as it could either help stabilize the country or further exacerbate tensions. This issue matters globally, particularly for those interested in Middle Eastern politics and economic policy. It underscores the challenges of implementing fiscal reforms in countries with deep-seated political and economic crises, raising questions about how governments can address both immediate financial needs and long-term systemic issues.

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Originally published on Al Jazeera on 2/23/2026