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RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHIK RUEHKUK RUEHLZ RUEHROV RUEHSR
DE RUEHLB #0008/01 0050818
ZNR UUUUU ZZH
R 050818Z JAN 09
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 3895
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RHEHAAA/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 02 BEIRUT 000008 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR NEA/ELA 
STATE PASS USTR FRANCESCKI 
STATE PASS USAID BEVER/LAUDATO/SCOTT 
TREASURY FOR MNUGENT AND SBLEIWEISS 
USDOC FOR 4520/ITA/MAC/ONE 
NSC FOR ABRAMS/RAMCHAND/YERGER/MCDERMOTT 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PREL PGOV LE
SUBJECT: LEBANON: GOL CONSIDERING SETTING A FLOOR FOR GAS EXCISE TAX 
(ECONOMIC WEEK IN REVIEW, DECEMBER 29 - JANUARY 4, 2008) 
 
CONTENTS 
-------- 
 
-- GOL IS CONSIDERING SETTING A FLOOR FOR GAS EXCISE TAX 
-- LEBANON- U.S. MEGAPORTS MOU 
-- ANTI-COUNTERFEIT ASSOCIATION LOOKS FOR CONTINUED PRIVATE-PUBLIC 
COOPERATION IN 2009 
-- MINISTRY OF EDUCATION CHOOSES IPR AS 2009 THEME IN SCHOOLS 
 
 
GOL IS CONSIDERING SETTING 
A FLOOR FOR GAS EXCISE TAX 
-------------------- 
 
¶1. (SBU) Finance Minister Mohammad Chatah told us on December 31 
that he is discussing the gas excise tax with PM Siniora and Energy 
Minister Alain Tabourian.  Chatah supports setting a fixed excise 
tax, regardless of the price of gas.  (Note: Chatah December 24 
mentioned to Embassy staff a 350 Lebanese Lira (LL) per liter (23 
cents/liter) excise tax, slightly above the LL 300/liter benchmark 
for the disbursement of USG budgetary support to the GOL.  End 
note.)  Chatah said the Ministry of Finance (MOF) will collect both 
the fixed excise tax -- which would add to the Treasury account -- 
plus the remaining margin due to low international oil prices.  The 
margin above the set excise tax would go to a special GOL account to 
finance shortfalls, such as in the Council for the South and the 
Fund for the Displaced, he said. 
 
¶2. (SBU) According to Chatah, if oil prices rise again, the GOL 
would collect the fixed excise tax, and the price of gas at the 
stations will be uncapped.  An excise tax of LL 350/liter will bring 
in to the Treasury $332 million annually, he noted.  Chatah said 
that once he, Siniora, and Tabourian agree on the formula, Chatah 
will submit the proposal to the cabinet for approval.  The formula 
will "crystallize in the coming days," he said, but would not give a 
definitive time frame. 
 
LEBANON- U.S. MEGAPORTS MOU 
-------------------- 
 
¶3. (U) Ambassador Sison and General Director of Lebanese Customs 
Assaad Ghanem signed on December 30 a memorandum of understanding 
between the U.S. and Lebanon on the Megaports project.  The project 
will install specialized equipment at the Beirut Port to detect 
illicit shipments of nuclear and other radioactive materials, and 
provide training on the equipment and detection of materials for 
Lebanese Customs staff members and other law enforcement officials. 
 
 
ANTI-COUNTERFEIT ASSOCIATION SEEKS CONTINUED 
PRIVATE-PUBLIC COOPERATION IN 2009 
-------------------- 
 
¶4. (SBU) At its annual general assembly meeting December 15 in 
Beirut, the Brand Protection Group (BPG) -- an association of 
leading local, regional, and international manufacturers and 
distributors aimed at combating counterfeiting -- highlighted BPG's 
major achievements in 2008, including continuation of its widespread 
awareness campaign.  Members, cognizant that Lebanon's 2009 
parliamentary elections may obstruct plans to improve IPR in 
Lebanon, summarized their main objectives for the year.  BPG hopes 
to continue its close collaboration with Lebanon's public sector, to 
include training 100 new inspectors at the Ministry of Economy and 
Trade (MOET) and lobbying the Ministry of Justice to establish 
specialized IPR courts.  The group also plans to push the GOL to 
develop a self-financing mechanism at the IPR department at the 
MOET; BPG argues additional funds could help increase staff and 
improve enforcement procedures. 
 
MINISTRY OF EDUCATION SETS 
2009 IPR THEME IN SCHOOLS 
-------------------- 
 
¶5. (U) On December 22, the Ministry of Education (MOE) officially 
announced that IPR would be the theme for its 2009 SchoolNet 
Project. (Note:  The SchoolNet Project is a MOE scheme, initiated in 
2002, that seeks to connect all private and public schools and 
libraries in a single network to facilitate learning and teaching. 
End note.)  The initiative will teach students about the 
 
BEIRUT 00000008  002 OF 002 
 
 
consequences of IPR violation by Lebanese consumers and businesses. 
 
 
¶6. (U) Minister of Education Bahia Hariri at the event questioned 
the practice of holding children accountable for "not respecting 
IPR" when no school programs exist in Lebanon to teach them IPR 
rights.  The MOE's initiative is being implemented in partnership 
with Microsoft Lebanon, the Educational Association for IT 
Development (EAID), and the International Education Association 
(IEA)- Lebanon. 
 
GRANT