Libya: HoR Speaker announces further tax reduction on foreign currency transactions

Speaker of Libya’s House of Representatives (HoR), Aqila Saleh, announced on Wednesday, November 20, a further reduction in the tax on foreign currency transactions, lowering it to 15% from the previous 20%. This adjustment applies to all purposes and marks the second decrease in what is commonly referred to as the “dollar tax.”

Last October, the tax rate was reduced for the first time to 20%, down from the 27% imposed by the HoR in March. The decision, as outlined in its text, allows for potential further adjustments based on Libya’s state revenue circumstances, contingent on proposals from the Governor of the Central Bank of Libya. Exceptions to the tax will also remain in place.

Osama Younis, Director of the Office of Presidential Affairs in the HoR, issued a formal request to Central Bank Governor Naji Issa and Deputy Governor Marie Al-Barasi to implement the necessary measures for the reduction.

This decision follows ongoing speculation on Libyan social media about an impending tax cut, particularly after the Central Bank’s Governor and newly appointed Board of Directors assumed their roles in October.