Employers who pay their employees in fresh dollars (real cash dollars) are now supposed to report salaries according to the “real dollar value.”
An announcement was shared on Friday by the Ministry of Finance on behalf of the Imports Manager, Louay El-Hajj Shehade. It states that employers who pay their employees full or partial salaries in fresh US dollars, or any other foreign currency, should report these salaries according to the “real dollar value.”
The aim behind this move is mainly tax deduction as it would make employers pay more taxes considering they currently report their salaries according to the official exchange rate of 1,515 LBP for one dollar.
The Federation of Young Businessmen and Women (FYBL) in Lebanon criticized this announcement claiming that it is unconstitutional and does not clearly specify what the “real dollar value” is.
The real dollar value could imply either the official 1,500 LBP, 3,900 LBP rate, or the black market 19,250 LBP rate. The announcement keeps this crucial detail vague.
FYBL also emphasized that “employees are at the base of companies” and any decision that would threaten their rights threatens FYBL’s rights.
This announcement hints at a possibility to finally consider the black market exchange rate when it comes to government organizations’ related processes.
