In recent days, some car importers in Lebanon paid tariffs based on a dollar rate of LBP 45,000. However, they were later surprised by a decision from the Finance Minister, Youssef Khalil, to revert the customs dollar rate for cars to LBP 8,000, despite some importers having already paid tariffs based on a rate of LBP 15,000 per dollar.
This has caused confusion and chaos for both car importers and citizens, as this country now has three different dollar rates for car tariffs.
Traders and citizens are left confused due to the improvisation and arbitrary decisions made by officials who succumb to the repercussions in hindsight, resorting to tinkering.
Why did the Finance Minister decide to revert to a rate of LBP 8,000 per dollar for car tariffs?
According to his letter on tariffs, the reason is the inability to modify imported car tariffs. A decision cannot change these tariffs from the Finance Minister alone but requires a decision from the Cabinet. This means the customs dollar rate will remain at LBP 8,000 for both new and used cars.
The letter also notes that the cars subject to the LBP 8,000 tariffs dollar rate were shipped to Lebanon before March 1, regardless of their entry date into the tariffs area.