Lebanon banks strike over deposit tax

The Association of Banks in Lebanon (ABL) on Thursdayannounced the banks will be closed down tomorrow in protest against aparliamentary decision to ratchet up taxes on bank and levy taxes on deposits.A joint meeting by the parliament committees earlier today recommended amendingthe tax law, levying a new tax on the interest rates of deposits, and forcing thebanks to subscribe to state bonds.The draft amendments will definitely have serious impacts on inflation, stability ofthe national currency, and the purchasing power of citizens, according to astatement by the ABL.The Association stated unequivocal rejection of the amendments due to theirharmful impacts on depositors, particularly the minor depositors, noting that themove could undermine the socio-economic benefits generated from salaries andwages. The move will lead to automatic increase in the interest rates on loans andcredits particularly the housing, personal and retail loans as well as the loans forsmall and medium economic entities which constitute the mainstay of economy, thestatement cautioned.