Libyan MP predicts dollar tax reduction to 5% by Year-End

A Libyan MP has said a tax on US dollar purchases could be cut to 5% by the end of the year.

Abdulmonem Al-Arfi told local media any reduction would need to be gradual to avoid disrupting the market.

He praised recent moves by the Central Bank of Libya, including lifting restrictions and releasing $15bnto boost the economy.

Libya has been in turmoil since the overthrow of Muammar Gaddafi in 2011.

Mr Al-Arfi also said the country should increase oil production to take advantage of rising prices.

He said “current events in the Middle East are impacting oil prices, and Libya should capitalise on this to strengthen its economy”.

The MP also revealed there were discussions about limiting imports of non-essential goods to curb price rises.

His comments come after the House of Representatives passed a resolution earlier this month lowering the tax on foreign currency purchases to 20% from 27%.

In August, the government imposed a tax on dollar sales, but this has been suspended by three court rulings.

The Presidential Council has called on the House of Representatives and the Central Bank to comply with the rulings.