By Libya Herald staff.
Malta, 21 January 2015:
At its cabinet meeting yesterday, the Libyan government, the only internationally recognized government in Libya, decided to form a committee to look into raising non-oil sector government revenues.
The committee is to be made up of representatives from the Finance, Planning, Economy and Industry Ministries, the Central Bank of Libya, commercial banks, as well as the Tax Authority and Customs Authority.
The Committee is come up with urgent proposals ‘’to put in place a system for the collection of taxes and customs duties at the point of the issuing documentary credit and for any other proposals that may aid in accruing any further revenues to the state coffers’’.
The need for this committee has arisen as a result of the drastic fall in Libyan state revenues caused by internal military and political fighting which has reduced oil production to about 300,000 bpd, as well as the collapse of international crude oil prices.
The Libyan government is therefore seeking drastic spending cuts as well as seeking to increase its non-oil sources of revenue.
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