Court abolishes Libya’s 54-year-old Jihad tax

The Constitutional Chamber of the Supreme Court has declared Law No. 44 of 1970, which established the Jihad Tax, unconstitutional. Following this landmark ruling, the 3% tax deduction will be suspended from employees’ salaries.

The Jihad Tax had required the deduction of 3% from salaries exceeding 100 dinars, with proceeds directed to the Libyan Jihad Fund. This fund was reorganised under Law No. 59 of 1972, which specified that these deductions would support “the Jihad of the Islamic world against colonial powers.”

The court’s decision marks a significant change to a tax system that has been in place for over five decades. Employees earning more than the 100-dinar threshold will now see their take-home pay increase by 3% with immediate effect following the suspension of these deductions.