Lebanese Banks Association building in Beirut. (The Daily Star/Mahmoud Kheir)
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Lebanese banks said Friday that they were planning to cut $850 million from the profits they made from the swap operations conducted by the Central Bank and pay it to the Finance Ministry and to include this revenue in the 2017 draft budget.The statement stressed that ABL sent a letter to the Treasury Department at the Finance Ministry on Dec. 28, 2016, to determine if the profits banks made from the swap operations would be subjected to taxes within the usual taxes on the lenders' profits or will the ministry take into account the circulars of BDL that stipulated that these net income should be used as provisions.Banks have reportedly made a net profit of close to $5 billion from the swap operation that was conducted from May 2016 .ABL added that based on these circulars, banks wanted to cut the tax from swap operation by 17 percent in accordance to the proposed new taxes on corporate profits or pay 15 percent on the profits if the taxes remainunchanged.
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