Lebanon: Technical Assistance Report-Tax and Customs Administration: An Urgent Need for Intervention
IMF Staff Country Reports, December 5, 2023
Source details
- Canonical URL
- Lebanon: Technical Assistance Report-Tax and Customs Administration: An Urgent Need for Intervention
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Bibliographic details
- Published: December 5, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400260803.002
Key findings and diagnosis
- Recognizes a downward trajectory in tax and customs administration requiring an urgent national dialogue on the future of Lebanon’s tax and customs administrations.
- Inaction and underinvestment will forego substantial revenues and prolong the effects of the crisis.
- Options exist to help reverse the decline in revenue administration; structural mechanisms for financing reform and modernization need to be explored.
- Overreach of the Higher Customs Council beyond administrative policy into operations has led to an inability to readily implement change or effectively manage critical operations.
Immediate operational priorities
- An immediate intervention is required to stabilize information technology operations and ensure the continuity of the value added tax and Revenue Directorates’ core operations.
- Having addressed immediate needs, pursue ‘quick wins’ in tax administration while consensus on more substantive reforms is achieved.
Reform directions and policy recommendations
- Pursue stabilization of IT systems as an urgent first step to secure core revenue functions (value added tax and Revenue Directorates).
- Explore structural financing mechanisms to support reform and modernization of tax and customs administrations.
- Cease the Higher Customs Council’s operational overreach and continue work to introduce a new organizational structure that permits effective management and implementation of reforms.
- Sequence reforms: address immediate stabilization, implement quick-win administrative improvements, then build consensus for more substantive structural reforms.
Subjects and keywords (as presented)
- Subject: Auditing, Customs administration core functions, International organization, Monetary policy, Public financial management (PFM), Revenue administration, Tax administration core functions, Taxes, Value-added tax
- Keywords: Auditing, CD project, Customs Administration, Customs administration core functions, Global, IMF CD activity, IMF CD project support, IMF Economist, IMF Middle East, Information Technology, IT staff, Modernization, Reform, staff remuneration, Tax Administration, Tax administration core functions, Value-added tax
Content in this bundle
- 1lbnea2023003