Lebanon's Prime Minister Hassan Diab announced the resignation of his government on Monday amid public anger over the huge explosion that devastated the capital Beirut last week.
In a televised address, Mr Diab blamed the blast, which killed at least 160 people and left 6,000 wounded, on "endemic corruption" and said his government had been the "victim of rumours”.
But he said they must give in to demands for change from the public, who have taken to the streets over several nights in protest against the government's handling of the disaster.
“We want to open the door for national salvation," Mr Diab said. "I declare today the resignation of this government. May God protect Lebanon."
Mr Diab's announcement followed the resignation of his information, environment, justice and health ministers, and several members of parliament since the explosion last Tuesday.
On Sunday, Mr Diab told Britain's ITV News that the Lebanese people had a right to be furious after "decades of unbelievable corruption”.
“I am not afraid of the people’s fury," he said, as pressure mounted on him and his government to resign.
"Absolutely they have a right to be furious, not just because of this. It is absolutely diabolical what happened.
“However, they were also furious before that, about three decades of unbelievable corruption. We are here facing all of these accumulated problems.”
Member of Parliament Alain Aoun told The National that the government's resignation would not affect the continuing investigation into the explosion at Beirut's port.
“The government will likely stay as a caretaker but the investigation is in the hands of the judges and the attorney general, and they are not affected by changes to the government,” Mr Aoun said.
“Maybe the ministerial committee will not survive but the judges will continue their work. They have already started.”
Tuesday's blast compounded months of difficulties in Lebanon, which was already dealing with an economic collapse that had prompted months of protests.
Its strained health infrastructure was also struggling to deal with the coronavirus pandemic.
Veteran politician and leader of the Progressive Socialist Party Walid Joumblatt said the resignation of the government met the "basic demand" of the people after the disaster.
"Today, the demand has been fulfilled and we consider it a great political victory," Mr Joumblatt told Sky News.
Over the weekend, public anger spilled out on to the streets, with police using tear gas to disperse rock-throwing protesters.
Despite the resignation of Mr Diab and his government, protesters hurled rocks and fireworks at Parliament on Monday night, as riot police and military personnel tried to keep them back.
Lebanon's National News Agency reported that bullets were fired into the air in the northern city of Tripoli to mark the decision.
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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
The Prison Letters of Nelson Mandela
Edited by Sahm Venter
Published by Liveright