BEIRUT: In light of deteriorating economic circumstances taking hold of Lebanon with the ongoing rise of unemployment across the country, mainly among youth, “Rethinking Lebanon” Organization declares the 25th of April as “Lebanese Youth Day” in an initiative to empower youth in their role to raise pull Lebanon out of its slump.
In support of Lebanese youth, “Rethinking Lebanon” plans to submit a draft law aimed to reduce taxes for a specified term of time, on companies and institutions willing to hire graduates from universities, and Vocational-Technical Institutes. New employees shall not exceed a certain age while their employment shall follow particular conditions such as the obligation to register employees in NSSF and engage them for a defined number of years, provided that companies do not force their current employees to resign in order to hire new ones and benefit from said incentives.
According to Article 5 of legislative Decree number 144 issued on 12/6/1959 (Income Tax Law), cases of complete exemption from tax on business profits are stipulated therein. Repeated Article 5 of the same decree has also stipulated particular terms to benefit from partial exemptions. In this regard, industrial establishments could use a part of their annual net profits to cover their contracting allocations, with the aim of setting up new industrial equipment or building houses for their workers on condition that tax deduction does not exceed the limit of four years.
Pursuant to repeated Article 5, new industrial corporations shall be exempted from income tax for a maximum term of 10 years under specified conditions such as establishing a plant in a region that the government plans to develop, which is to be determined by virtue of a decree issued by the Ministerial Council. The newly established plant shall engage to produce new products and material. At this stage, a paragraph shall be appended to repeated Article 5 upon which appropriate tax incentives are offered in order to create new job opportunities to Lebanese Youth across all sectors.
As providing job opportunities to graduates helps contain social and economic issues and curb increasing immigration, President of “Rethinking Lebanon” Jihad Hokayem, stresses from his end on the necessity to offer such incentives to companies and institutions operating in Lebanon, eying to increase employment of specialized Lebanese youth and support economic development, hoping to have the draft law adopted by Parliament.
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