BEIRUT, April 10 (KUNA) -- The Association of Banks in Lebanon (ABL) on Thursday announced the banks will be closed down tomorrow in protest against a parliamentary decision to ratchet up taxes on bank and levy taxes on deposits.
A joint meeting by the parliament committees earlier today recommended amending the tax law, levying a new tax on the interest rates of deposits, and forcing the banks to subscribe to state bonds.
The draft amendments will definitely have serious impacts on inflation, stability of the national currency, and the purchasing power of citizens, according to a statement by the ABL.
The Association stated unequivocal rejection of the amendments due to their harmful impacts on depositors, particularly the minor depositors, noting that the move could undermine the socio-economic benefits generated from salaries and wages. The move will lead to automatic increase in the interest rates on loans and credits particularly the housing, personal and retail loans as well as the loans for small and medium economic entities which constitute the mainstay of economy, the statement cautioned. (end) oh.gb