Current Prime Minister, Najib Mikati, of the AZM Movement, was appointed in September 2021 as caretaker Prime Minister after having served previously from 2011 to 2014, and for a short period in 2005. He was re-elected in June this year to continue in the role until a government is formed.
Tis diversity often causes problems with interference by external powers, whilst corruption is a huge issue in all areas from politics to law enforcement.
Te Republic of Lebanon was established in 1926 and became independent from France in 1943.
After the 15 year long Civil War, general elections were held in 1992, the first since 1972, which led to the creation of a government presided over by Prime Minister and billionaire Rafiq Hariri who began the arduous task of rebuilding the country.
Post war hyperinflation had struck in the 1980s and this had continued until 1992 which then saw the collapse of the Lebanese pound. Around this time the Lebanese pound was devalued from LBP4.5 to the US$1 to LBP1,800 to the US$1 by 1992
Te devaluation was seen as a financial coup d’état to pave the way for Hariri to step in and ascend to power as Prime Minister, which saw in the post war rehabilitation era.
Tis period saw real estate development boom P56 WIRE / PULSE / INSIGHT / REPORTS
in particular with investors from abroad eager to enter the market, whilst tax reforms were also introduced. For instance, income tax rates were reduced from a progressive rate of two per cent to 32 per cent with 13 income brackets prior to 1994 to two to 10 per cent with five income brackets after the tax reform in 1994. Today that rate is between four per cent and 25 per cent with six income brackets.
Standard corporate tax rate was reduced from a rate of six to 50 per cent with 12 brackets prior to 1994 to a set 10 per cent rate after reforms. Today the income tax rate is 17 per cent.
VAT is currently a unified flat rate of 11 per cent and since its introduction in 2002 has been the most significant contributor to government revenues.
Hariri led the country between 1992 and 1998 and then after a two-year break was reappointed in 2000. He resigned in 2004 due to disagreements with pro-Syrian President Emile Lahoud and he set up an opposition coalition with the aim of overturning the Syrian backed successor government, but was assassinated in 2005 just four months after leaving office. Huge protests were organised at the time demanding
the withdrawal of all Syrian troops from Lebanon.
Current Prime Minister, Najib Mikati, of the AZM Movement, was appointed in September 2021 as caretaker Prime Minister after having served previously from 2011 to 2014, and for a short period in 2005. He was re-elected in June this year to continue in the role until a government is formed.
Mikati is a billionaire tycoon known for his Beirut investment firm M1 Group. Mikati and his brother founded Investcom in 1982 selling satellite phones during the Lebanese civil war later expanding into Africa building cellphone towers before South Africa’s MTN bought them out in 2009. Te brothers formed investment firm M1 Group, which now holds stakes in MTN plus stakes in Pepe Jeans and real estate holdings in New York, Monaco and London.
Since Mikati took office last year he has been dealing with continued rising inflation problems, huge unemployment, regular power cuts and continued fuel shortages.
Meanwhile, the current President, Michel Aoun, is a former Commander of the Lebanese Armed
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