LEBANON - Submitted to Cabinet in late August, the preliminary 2027 budget drafted sets total public revenues and expenditures at LBP 614.945 trillion, compared with LBP 538.415 trillion in the 2026 budget, representing an increase of around 14.2%.
The proposal includes tax and fee measures, changes to tax procedures, and provisions covering public spending, companies, real estate, digital services, education, sports, lotteries, and ports.
Tax Revenues and Proposed Changes
Tax revenues are projected at LBP 528.223 trillion in 2027, up 20.2% from LBP 439.613 trillion in the 2026 budget.
Income, profits and capital gains tax revenues are projected to rise by 38.1% to LBP 79.6 trillion, while property tax revenues are projected to decline by 5.4%.
Value-added tax (VAT) is projected to generate LBP 205.666 trillion, accounting for approximately 38.9% of total tax revenues.
The draft also revises provisions governing income-tax declarations, wages, real estate transfers, inheritance and built property. Lump-sum wages paid to workers and employees on an occasional basis according to a piece or quantity would be subject to a 3% tax on their full value.
Digital Services and Tax Administration
The proposal introduces provisions covering certain digital and electronic services supplied by non-resident providers.
Under the draft, some non-resident service providers would be required to appoint a resident representative to fulfill tax obligations. Recipients of certain services in Lebanon would also be subject to declaration and payment requirements.
The draft expands electronic tax declarations and payments and provides for information-sharing between public institutions, including comparisons between worker and wage information submitted to the tax administration and data held by the National Social Security Fund.
Fees and Public Services
The draft revises a range of administrative fees related to residency, official examinations, certificates, identity cards, customs declarations and sports and youth organizations.
The proposed fee for a new identity card is LBP 1.5 million, while the stamp duty for customs declarations would be set at LBP 3 million per declaration.
Public Expenditure
Wages, salaries and social benefits are projected at LBP 329.2 trillion, representing around 53.5% of total expenditure.
Acquisition of fixed assets is projected at LBP 66.633 trillion, or approximately 10.8% of total spending. The allocation includes buildings, equipment, roads, ports, airports, construction projects, and maintenance.
Five sectors account for approximately 67% of total projected expenditure: Defense, Interior and Municipalities, Education and Higher Education, Public Health, and common expenditures.
Other Budget Provisions
The draft includes provisions concerning healthcare appropriations, transfers of salary allocations, port revenues, national lottery prizes and the proposed creation of an electronic invoice lottery.
It also proposes cancelling future appropriations under several previously approved program laws covering public buildings, roads, expropriation, military equipment, education, telecommunications, energy, water and projects related to the Litani River basin.
The proposal remains subject to Cabinet review, the legislative process and any amendments adopted before final approval.
Key Figures
Total revenues: LBP 614.945 trillion
Total expenditures: LBP 614.945 trillion
Increase from 2026: 14.2%
Tax revenues: LBP 528.223 trillion
VAT revenues: LBP 205.666 trillion
Wages and social benefits: LBP 329.2 trillion
Fixed-asset acquisition: LBP 66.633 trillion
Defense: LBP 120.570 trillion
Interior and Municipalities: LBP 64.876 trillion
Education and Higher Education: LBP 64.537 trillion
Public Health: LBP 51.576 trillion
