Many Lebanese struggle to afford even basic provisions and services as the country is gripped by economic and political crises. AFP
Many Lebanese struggle to afford even basic provisions and services as the country is gripped by economic and political crises. AFP
Many Lebanese struggle to afford even basic provisions and services as the country is gripped by economic and political crises. AFP
Many Lebanese struggle to afford even basic provisions and services as the country is gripped by economic and political crises. AFP

Almost 80% of Lebanese living in poverty, UN study reveals


Gareth Browne
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Seventy-eight per cent of Lebanon’s population is now living in poverty, according to a new report by the UN that spells out the urgent humanitarian crisis facing the country.

The study, published by the UN Office for the Co-ordination of Humanitarian Affairs (OCHA), puts Lebanon’s rate of extreme poverty on a par with Cameroon and Haiti.

It highlights a stark rise in both poverty and extreme poverty – two of the most prevalent measures of deprivation – since 2020 and calls for $378.5 million in funding for an emergency response plan to help alleviate the crisis.

“In March 2021, 78 per cent of the Lebanese population (three million people) was estimated to be in poverty,” the report said.

This is a significant increase on the 55 per cent reported to be living below the poverty line in a similar report published last year.

“The multiple crises afflicting Lebanon have led to a severe deterioration in people’s standard of living," it said.

"Basic rights are being denied as people are unable to afford or access basic goods and services including health, food, education, electricity, water and wastewater management.”

The report also notes a drastic rise in extreme poverty, which the World Bank defines as people who are “severely deprived of basic human needs” – the most severe type of poverty.

“Extreme poverty – also known as 'food poverty' – increased threefold from 2019 to 2020, rising from 8 per cent to 23 per cent,” said the report.

Millions of Lebanese, plus Palestinian and Syrian refugee communities, have been affected by an economic crisis the World Bank has described as one of the worst in 150 years.

The Lebanese lira has lost more than 90 per cent of its value since October 2019, leaving essentials such as food, fuel, and water unaffordable to many.

Electricity has become scarce, unemployment is soaring and long, meandering queues at petrol stations have become a common sight across the country.

Compiled by OCHA with the help of NGOs working in the country, the report spells out an emergency plan to deal with those suffering most from the crisis, while also warning of the worsening social consequences of the country’s dire humanitarian situation.

“Intra-communal tensions within Lebanese communities have worsened due to the shortage of basic essential goods and services," the report said.

"Tensions between host communities and refugees have similarly increased.

"Reports indicate growing forced evictions and occurrences of refugees being denied access to shops selling subsidised goods or having to pay for basic goods at increased prices.”

Last week, international donors, including France and the US, pledged $370 million in aid at a donor conference organised by French President Emmanuel Macron.

The country’s humanitarian crisis has been exacerbated by political stalemate, following the government’s resignation after the huge explosion at Beirut port last year. The blast killed 218 people, injured thousands and devastated the capital.

Lebanon could potentially unlock billions in international aid and support if it agrees to much-needed political and banking reforms.

However, this has been stymied by the stalemate among the country's politicians, leading to an impasse in creating a new government.

UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Company profile

Company: Rent Your Wardrobe 

Date started: May 2021 

Founder: Mamta Arora 

Based: Dubai 

Sector: Clothes rental subscription 

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Updated: August 08, 2021, 12:20 PM