Reports: Tax Law Annulment Crisis Tops Cabinet Talks

The government will convene on Thursday at the Baabda Palace under the chairmanship of President Michel Aoun to discuss needed mechanisms after the Constitutional Council's decision to annul a tax law intended to fund the wage scale, in addition to a number of fiery issues that took their toll lately on the general situation in the country.

Sources close to President Aoun told al-Akhbar daily: “The aim of today's meeting is to come up with a solution. Contacts are continuing between ministers of the Free Patriotic Movement and ministers of the Amal movement to reach a formula,” as for the repercussions of the annulled tax law that triggered uproar in the country.

Things are reeling between two extremes: "Either the adoption of an independent (tax) law, a solution insisted by (Speaker Nabih) Berri, or be part of the budget, which is our proposal,” the sources added on condition of anonymity.

The sources stressed that they will “take all proposals into consideration.”

Meanwhile, al-Joumhouria daily quoted unnamed sources who said that “cabinet talks will focus on two proposals, one submitted by Minister of Finance Ali Hassan Khalil related to the accounting records and amending articles 11 and 17 of the tax law --which was repealed by the Constitutional Council-- to be approved by an independent law in the Parliament.

“The second suggestion as adopted by the President's team, is aimed at a constitutional amendment that temporarily suspends the constitutional provision relating to the accounting records until the budget is approved,” added the sources.

According to the sources, the possibility of reconciling the two proposals is “difficult.”

Last week the Constitutional Council revoked a controversial tax law aimed at funding a new wage scale for civil servants and the armed forces.

The decision sent waves of uproar amid fears that it will obstruct the implementation of a long-awaited wage scale approved in July.