Lebanon to drop tariffs on hybrid cars

Lebanon may drop import tariffs on fuel-efficient hybrid vehicles as the Mediterranean country strives to improve its air quality and curb carbon emissions.

"Hybrid cars will be exempted from all import duties in an effort to encourage Lebanese [to] own environmentally friendly vehicles," the country's finance minister Raya Hassan recently

in Beirut.

This year's draft budget, which has not yet been sent to the cabinet for approval, would include an item allowing companies and individuals to pay a zero tariff on imported hybrid cars. The government was also considering a plan to replace Lebanon's taxi fleet, consisting of about 20,000 cars and vans, with environmentally friendly vehicles, Ms Hassan said

"We discussed ways to co-operate between the finance ministry and the environment ministry in an attempt to control pollution," she added.

The

has warned that environmental deterioration could cost Lebanon US$560 million (Dh2.06 billion) annually.

Ms Hassan said she was also concerned about the effect of environmental problems on citizens' health.

Tariffs on imported cars totalled $52.2m in the first two months of 2010, accounting for 19 per cent of Lebanese customs revenues and 5 per cent of tax revenues, the

.

On the other hand, environmental specialists have estimated that 70 to 80 per cent of air pollution in Lebanon emanates from the transportation sector, the bank said.

Hybrid vehicles combine a conventional internal combustion engine, usually running on petrol, with an electric motor powered by a rechargeable battery. They are more fuel efficient and emit less carbon dioxide and pollutants than conventional vehicles.

Climate-change aside, Lebanon's proposal to give up some of its short-term revenue from import tariffs to encourage ownership of less polluting vehicles makes long-term financial sense. Improved air quality would certainly reduce the

, and therefore the costs to the government of related health care and lost workforce productivity.

The initiative sets a good regional example. It also shows how enlightened self-interest on the part of national governments can sometimes help solve cross-border environmental problems.