Ageela Saleh, Speaker of Libya’s eastern based parliament, the House of Representatives (HoR), passed a decree today (86/204) reducing the surcharge/levy on the official sale of foreign currency by banks from 20 to 15 percent.
The decree, effective today, says that the tax can be reduced further if state revenues permit it – based on a request to do so from the CBL.
The decree further specifies that revenues generated from the tax are to be used to cover the expenses of development projects and to repay the public debt.
Controversial FX sales tax
It will be recalled that this controversial FX sales tax caused much political angst back in March of this year when it was decreed by HoR Speaker Saleh – based on a request by the then CBL Governor Saddek El-Kaber in February. Saleh was accused of decreeing it unilaterally without the approval of the rest of the HoR.
Opposition by HoR to the tax
Various members of the HoR had told Libyan media at the time that the HoR would not have approved the tax and had stressed that parliament was the legislative authority whose role is to issue laws and legislation – not Salah on his own.
The move is now seen as the straw that broke the camel’s back leading to the semi-legal ousting of El-Kaber in August/September this year. By October, the HoR in agreement with the High State Council and through UNSMIL mediation, abandoned the ousted El-Kaber and chose Naji Issa as the new Governor. A new CBL board of was also agreed which held its first meeting this November.
CBL making some practical reforms
On an operational level, it will be recalled that yesterday the CBL reduced commissions charged on e-payments through the Point-of-Sale (POS) machines.
On Monday, the CBL finally allowed the private sector Tadawul Tech, one of Libya’s largest electronic payment providers, to interface its e-payment acceptance network with the state National Switch, Moamalat Financial Services Company.
CBL reduces POS e-payment charges to 1 and 1.5 percent from 3.75 percent
Tadawul and Moamalat card payment switch networks linked for interchangeable use by customers
HoR confirms El-Kaber as Governor of the CBL
Presidency Council to elect new board and Governor of CBL
Newly installed CBL administration claims it has gained control of all its banking systems
HoR votes unanimously to approve Naji Issa as new CBL Governor
