The House of Representatives (HoR) decided on Sunday to reduce the value of the tax imposed on the official exchange rate of foreign currencies to become 20% for all purposes instead of 27%, amending its decision issued in mid-March to impose a tax on the official exchange rate of foreign currencies at 27% for all purposes until the end of 2024.
Article 1 of the decision states: "The value of the fee imposed on the official exchange rate shall be reduced, provided that the exchange rate is added to this percentage, with the possibility of reducing it according to the circumstances of the Libyan state's revenues during the period of validity of the decision."
The decision stipulated that the revenue generated from the tax shall be used to cover "development project expenses if necessary," or to add it to "the resources allocated to the Central Bank of Libya to pay off the public debt under House of Representatives Law No. 30 of 2023, taking into account the exceptions granted by the Speaker of the House of Representatives."
On August 1, a decision to impose a tax on the sale of dollars was published in the Official Gazette, despite it being issued last March and coming into effect immediately after its issuance, while three court rulings were issued to suspend the implementation of this decision and consider it illegal.
