The Tripoli based Ministry of Economy and Trade was forced to issue a denial yesterday after several Libyan Arabic language news sites published its proposal to introduce a consumption tax on some imports from certain countries.
In its denial statement, the Ministry said that what has been circulated on social media regarding the imposition of a consumption duty on imported goods is nothing more than a proposal that was studied at the request of several national factory owners. This proposal, it added, came within the framework of protecting Libyan industry and the local product from the phenomenon of dumping.
The Ministry clarified that the proposal had been transferred to the Prime Ministry for consideration within the context of studying economic policies, without any official decision being taken to date. Furthermore, it added that issuing a decision to impose such fees is not within its competence but is carried out in accordance with the legal procedures followed and issued by law.
The Ministry went on to ‘‘categorically confirm’’ that there is no trend at the present time, and in light of the current circumstances that the country is going through, to impose new taxes on imported goods.
The leaked policy proposal document
The rationale for the introduction of a consumption / production tax on some imported goods in the Ministry of Economy and Trade’s policy proposal document was to protect local production, deter dumping of cheap and sub-standard goods, conserve Libya’s finite and much in demand hard currency revenues and reserves, and imposing the concept of reciprocity of taxes on trade partners.
