Tax evasion in Lebanon close to $5B: Bank Audi

in english/The Daily Star/اقتصاد

Bank Audi said Wednesday that the Lebanese authorities can close the country’s fiscal gap if they combat tax evasion, which the bank estimated at $5 billion. “While it is increasingly difficult to raise taxes in a slowing down real sector environment, the reinforcement of resource mobilization should come from fighting tax evasion, which is a prerequisite for any fiscal soft-landing scenario for Lebanon. … We estimate Lebanon’s fiscal evasion gap at circa $5 billion in 2017, the equivalent of 10 percent of GDP,” Audi said in its second-quarter report on Lebanon for 2018. There is no official estimate yet on the size of tax evasion in Lebanon, although officials admit that many sectors do not pay taxes to the government…

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