Jordanian Prime Minister Bisher Al Khasawneh, left, speaks to reporters after meeting Lebanese premier Najib Mikati in Beirut, Lebanon, on Thursday, September 30, 2021. AP
Jordanian Prime Minister Bisher Al Khasawneh, left, speaks to reporters after meeting Lebanese premier Najib Mikati in Beirut, Lebanon, on Thursday, September 30, 2021. AP
Jordanian Prime Minister Bisher Al Khasawneh, left, speaks to reporters after meeting Lebanese premier Najib Mikati in Beirut, Lebanon, on Thursday, September 30, 2021. AP
Jordanian Prime Minister Bisher Al Khasawneh, left, speaks to reporters after meeting Lebanese premier Najib Mikati in Beirut, Lebanon, on Thursday, September 30, 2021. AP

Lebanese and Jordanian PMs discuss energy needs


Elias Sakr
  • English
  • Arabic

Jordan is committed to help Lebanon resolve its power crisis and meet its energy needs, Jordan's prime minister said on Thursday during a visit to Beirut.

The visit was the first by a senior foreign government official to Beirut since Najib Mikati’s Cabinet assumed its duties after a year of political paralysis that accelerated the country's financial meltdown.

“We have an interest in supporting Lebanon and preserving its stability, and we will not be late in securing its needs," Bisher Al Khasawneh told reporters after meeting the Lebanese prime minister.

The two officials discussed potential agreements to help energy-starved Lebanon meet its electricity needs, Mr Al Khasawneh said.

Jordanian Prime Minister Bisher Al Khasawneh speaks during a joint press conference with Lebanese Prime Minister Najib Mikati (not pictured) at the government palace in Beirut, Lebanon, 30 September 2021. EPA
Jordanian Prime Minister Bisher Al Khasawneh speaks during a joint press conference with Lebanese Prime Minister Najib Mikati (not pictured) at the government palace in Beirut, Lebanon, 30 September 2021. EPA

"We discussed the issue of importing gas and electricity to deal with the energy crisis, and efforts that are currently under way with our brothers to secure [Lebanon’s] needs from Jordan and a number of agreements that need to be ratified.”

Mr Mikati said discussions focused on efforts to import Egyptian gas and supply Lebanon with electricity from Jordan through Syria.

“We want agreements that are beneficial to the Lebanese and Jordanian peoples, rather than fictitious deals.”

Mr Mikati said the energy minister will pursue discussions with his Jordanian counterpart in this regard.

Jordan fully reopened its main border crossing with Syria on Wednesday in a move that experts say could signal efforts to bring Syria back into the Arab fold.

The US, which has suspended its diplomatic presence in Syria in 2012, has agreed to help Lebanon secure electricity, President Michel Aoun’s office said this month, implying Washington was ready to waive sanctions that prohibit official transactions with Syria.

Mr Al Khasawneh, who also met Mr Aoun on Thursday, said Jordan was ready and committed to supporting Lebanon.

"President Aoun asked me to deliver a written letter addressed to HE King Abdallah," Mr Al Khasawneh told reporters before leaving the presidential palace to meet Speaker Nabih Berri.

Jordan had hosted a meeting this month in Amman along with the Egyptian, Syrian and Lebanese energy ministers to discuss Lebanon’s energy needs. The meeting followed a visit by a Lebanese delegation led by former deputy prime minister Zeina Akar to Damascus for the same purpose.

Damascus has said it was willing to help Lebanon import electricity to cover its power deficit.

Lebanon’s electricity problems have intensified in recent months as the state-owned power company further rationed its supply over fuel shortages.

The shortages have been sparked by the Central Bank’s decision to lift subsidies on fuel imports among other vital commodities to protect its dwindling foreign currency reserves.

On Wednesday, the government decided to ask the Central Bank to provide a $100 million loan to the state power company to boost its electricity supply, Energy Minister Walid Fayyad said. Electricity du Liban has been providing only up to four hours of power daily across many parts of the country.

Mr Fayyad said the government was seeking to boost power supply before deciding on raising electricity tariffs. The state-owned company has been operating at a loss for nearly two decades, selling electricity below production costs.

Private generators that used to make up for state power rationing have also cut their electricity supply because of diesel shortages that risked shutting down hospitals, schools and other vital infrastructure.

The shortages and deteriorating living conditions have sparked violence across the country as consumers compete for access to petrol and diesel.

The World Bank described Lebanon’s crisis as one of the most severe globally since the 1850s. The financial meltdown has plunged more than half the population into poverty with the local currency losing over 90 per cent of its value against the dollar and commercial banks denying depositors access to the bulk of their savings.

Heather, the Totality
Matthew Weiner,
Canongate 

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

 

 

 

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The biog

Name: Samar Frost

Born: Abu Dhabi

Hobbies: Singing, music and socialising with friends

Favourite singer: Adele

TWISTERS

Director: Lee Isaac Chung

Starring: Glen Powell, Daisy Edgar-Jones, Anthony Ramos

Rating: 2.5/5

Updated: October 04, 2021, 10:56 AM