Lebanese protesters shout slogans during a demonstration against the high cost of telecoms, the high cost of living and the low purchasing power of the Lebanese pound in front of the MTC Touch communications building in Beirut, Lebanon. EPA
Lebanese protesters shout slogans during a demonstration against the high cost of telecoms, the high cost of living and the low purchasing power of the Lebanese pound in front of the MTC Touch communications building in Beirut, Lebanon. EPA
Lebanese protesters shout slogans during a demonstration against the high cost of telecoms, the high cost of living and the low purchasing power of the Lebanese pound in front of the MTC Touch communications building in Beirut, Lebanon. EPA
Lebanese protesters shout slogans during a demonstration against the high cost of telecoms, the high cost of living and the low purchasing power of the Lebanese pound in front of the MTC Touch communi

Protesters march through Beirut against Lebanon price surges


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Dozens of protesters angered by the rapid deterioration of living standards in Lebanon marched through the capital Beirut on Tuesday evening and attempted to break into the headquarters of MTC Touch, one of the two state-contracted telecoms companies.

The demonstrations, in which a handful of protesters clashed with security forces, came days after a major jump in the cost of phone and internet services — the latest price rise in a country suffering from inflation of more than 200 per cent.

To attend the protest, demonstrators Bassil Hatoum, Maan Moghrabi and Yaman Moghrabi had to split the petrol bill on their way from Kfar Silwan, a village more than an hour away from Beirut.

“We can't afford to get here without splitting it. And that’s just us,” said Mr Hatoum, a 27-year-old music manager.

“Imagine all the people who can’t afford to come to these protests because they can’t afford the petrol to get here.”

Lebanon’s economic collapse, which began in 2019, has caused about 80 per cent of Lebanon’s population to slip below the poverty line.

Dire shortages of basic goods and services have plagued the state in the years since. State electricity is nearly nonexistent, so the majority of Lebanon’s population relies on expensive private generator subscriptions for backup electricity. These are powered by diesel, itself often a scarce commodity in the troubled nation.

Water, bread, fuel and medicine are also often in short supply and the local currency has plunged in value by more than 90 per cent.

“They’ve brought us to below poverty and somehow they’re still in power,” Mr Hatoum said, referring to Lebanon’s political elite, many of whom transition from their roles as warlords during the country's civil war — which ended 30 years ago — to national leaders.

Mr Hatoum described them as “mafia leaders”.

“They’re experts at staying in power through clientelism,” 32-year-old Mr Moghrabi, another of the protesters, added.

“No one is comfortable, except for those with money or people who benefit directly from having the political class in power.”

Protesters said the march, which also stopped at the Association of Banks in Lebanon, was the first in a new wave of demonstrations against the economic crisis and the ruling class.

“The situation is getting worse and worse. They are making the people carry the brunt of the crisis, whether it’s from electricity, gas, diesel, telecoms, deposits,” Fouad Debs, from the Depositors Union, told The National.

Commercial banks in 2019 imposed capital controls on small depositors, barring access to dollars and only allowing them to retrieve their money in Lebanese pounds at vastly reduced rates.

Mr Debs said “people’s life savings have been stolen”, hence the anger at the Association of Banks in Lebanon on Tuesday night.

Protests in October 2019, which were sparked over a proposed tax on the usage of WhatsApp, later led to nationwide protests against Lebanon’s ruling class and the collapse of the government.

And Mr Debs said that, while the protests were not exclusively linked to the telecoms rate increase, it was certainly a factor.

“If you keep on adding straw to the camel's back, [the telecoms price hike] was another one.”

Reforms necessary for unlocking billions of dollars in international aid have yet to be enacted, agreement over a financial recovery road map has dragged and a bailout by the International Monetary Fund remains a long way off.

For Mr Debs and the three young protesters from Kfar Silwan, this demonstration was the first of several. They all expressed hopes that small protests happening across the country would gain momentum.

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

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Read part one: how cars came to the UAE

 

Company%20profile
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Suggested picnic spots

Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
 
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes 

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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UFC%20FIGHT%20NIGHT%3A%20SAUDI%20ARABIA%20RESULTS
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Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

ALRAWABI%20SCHOOL%20FOR%20GIRLS
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Director: Romany Saad
Starring: Mirfat Amin, Boumi Fouad and Tariq Al Ibyari

Updated: July 05, 2022, 7:01 PM