• People queue to buy bread at a local bakery in Beirut, Lebanon on June 27. Lebanese officials announced more measures to stabilise the nation’s plunging local currency and rein in soaring food prices that have triggered nationwide protests. Hasan Shaaban/Bloomberg
    People queue to buy bread at a local bakery in Beirut, Lebanon on June 27. Lebanese officials announced more measures to stabilise the nation’s plunging local currency and rein in soaring food prices that have triggered nationwide protests. Hasan Shaaban/Bloomberg
  • People queue to buy bread in Beirut, Lebanon on June 27. Hasan Shaaban/Bloomberg
    People queue to buy bread in Beirut, Lebanon on June 27. Hasan Shaaban/Bloomberg
  • Flat bread loaves on a conveyor inside the kitchen at a local bakery in Beirut, Lebanon on June 27. Hasan Shaaban/Bloomberg
    Flat bread loaves on a conveyor inside the kitchen at a local bakery in Beirut, Lebanon on June 27. Hasan Shaaban/Bloomberg
  • Crowds outside a local bakery in Beirut. Hasan Shaaban/Bloomberg
    Crowds outside a local bakery in Beirut. Hasan Shaaban/Bloomberg
  • Scenes outside Beirut's bakeries. Hasan Shaaban/Bloomberg
    Scenes outside Beirut's bakeries. Hasan Shaaban/Bloomberg
  • Workers wearing protective face masks serve a large crowd of customers at a bakery in Beirut on June 27. Bloomberg
    Workers wearing protective face masks serve a large crowd of customers at a bakery in Beirut on June 27. Bloomberg
  • Flat bread inside the kitchen at a local bakery in Beirut. Bloomberg
    Flat bread inside the kitchen at a local bakery in Beirut. Bloomberg

More than three million people need food assistance in Lebanon


Jamie Prentis
  • English
  • Arabic

More than three million people need food assistance in Lebanon, a country with the second highest food inflation globally, the World Food Programme warned on Monday.

Lebanon, which has a population of around 5.5 million, is grappling with one of the worst economic crises in modern history.

The WFP said the financial collapse and the country's ongoing political instability “continues to have a detrimental impact on the food security” of households.

According to a study carried out in May, around 25 per cent of households are experiencing acute food insecurity.

The WFP describes acute food insecurity as “when a person's inability to consume adequate food puts their lives or livelihoods in immediate danger”.

In June 2023, Lebanon reported the second highest food price inflation globally, with a rate of 280 per cent.

The country has no president, a caretaker prime minister with limited powers and a deeply fragmented cabinet. It failed to appoint a formal successor to central bank governor Riad Salameh whose tenure ended last month, leaving the position to an acting head.

The WFP said the inability to appoint a successor, which has been blamed on political disagreements, “raises uncertainties over an already fragile system and further delays the implementation of an economic recovery plan”.

Parliament is paralysed and unable to agree on the country's next president amid an unprecedented governance vacuum. With the cabinet in a caretaker status, it has extremely limited powers compared to normal.

Lebanon is also home to more than one million Syrian refugees who fled the civil war in their country. Lebanese politicians say this has added pressure to a severely strained nation.

The economic crisis, blamed on decades of mismanagement and corruption by the Lebanese elite, has led to the national currency losing about 98 per cent of its value against the US dollar, while living standards are plummeting. Inflation is rampant but salaries have failed to keep pace.

Many families have been plunged into poverty and have had to significantly adjust their diets, for instance by reducing meals and cutting out meat. A near-absence of state electricity has meant an increased risk of food deterioration, with those who can afford it forced to turn to expensive diesel-guzzling private generators to fill the gap.

And despite Lebanon reaching a preliminary agreement with the International Monetary Fund for a $3 billion bailout last year, almost none of the reforms requested to secure the money have been introduced.

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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Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.

“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.

“They were living in perpetual mystery as to how their futures would pan out, and what that would be.

“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.

“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.

“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”

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Amazon Prime

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Are they open to only Emiratis? The awards are open to anyone, regardless of age or nationality, living anywhere in the world.

When do nominations close? The process concludes on December 31.

How do I nominate someone? Through the website.

When is the ceremony? The awards event will take place early next year.

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Sally Rooney, Faber & Faber
 

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Speed: 0-100kph in 6.2sec 

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Multitasking pays off for money goals

Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.

That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.

"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.

Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."

People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.

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Updated: August 22, 2023, 10:42 AM