Several reliable Arabic language Libyan media sites reported last Wednesday (11 March) that the Speaker of the House of Representatives (HoR), Ageela Saleh, has now reversed his decision to impose the controversial import tax on some goods.
The media sources say Saleh has now communicated the reversal of his decision in a letter to the Governor of the Central Bank of Libya (CBL), Naji Issa, instructing him to cancel the tax.
Consequently, the reports say all goods and services will be exempt from these new taxes from the date of the decision until a study is conducted by experts. It is expected that this decision will be implemented starting next Sunday 15 March – which is when the Central Bank officially is expected to receive the letter.
The saga of the new import tax law
The introduction, or lack of, of the new import tax has been a saga that has threatened to even unseat HoR Speaker Saleh from his post. The accusation is that Saleh has colluded in a (virtual) backroom deal with the CBL Governor Issa to impose a new import tax without prior debate or members of the HoR voting on the issue.
Initially, and after public demonstrations in several cities against the rising cost of living, during some of which gunfire was heard near demonstrators, Saleh denied he had ‘‘passed’’ such a law. He blamed first one of his Deputy Speakers, then when he denied it, he blamed the other – who also denied he had ever chaired an HoR session during which the tax law was passed.
After wide and deep public and media opprobrium, Saleh has now decided to cancel a tax that he supposedly did not approve.
Is Saleh’s grip on the HoR weakening?
The anger with Saleh’s long history of unilaterally running the HoR as if it was his own personal possession has now boiled over to such an extent that a bloc of HoR members have now called for an official HoR session in which they aim to review HoR internal regulations – and possibly unseat Hafter as Speaker.
It is unclear if they will, or will be allowed to, succeed in holding such an official session and with the agenda they desire. And it is unclear if they will succeed in unseating Saleh as he serves as a useful legal underpinning to Hafter’s existence.
Will Hafter allow Saleh to be replaced?
While Saleh and Hafter have had their differences over the years, they do have a symbiotic relationship – albeit an asymmetrical one. Hence, Hafter may take coercive counteraction to retain the useful Saleh in his post.
Has there been a shift in the old dynamics of the HoR
Nevertheless, the idea that a bloc of HoR members has publicly announced in Benghazi that it is considering this move is in itself telling politically. It could be just a passing moment, but it could reflect a permanent shift in the moribund HoR’s dynamics.
HoR has long lost its mandate and moral right to govern
The HoR has long lost its respect, mandate and moral right to govern from its Libyan electorate as it has proved itself, thanks to Libya’s political split, to be ineffectual. Libya’s rapidly deepening economic crisis in the form of the crashing foreign exchange rate of the Libyan dinar, the rocketing annual inflation and prices and the resultant collapse in standards of living is testimony to the HoR’s (and successive governments’) failure.
The end-of-March proposed HoR session could be a new phase in the HoR’s history and an end to Saleh’s Speakership – or it could be yet another false dawn.
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Saleh refutes responsibility for passing new import tax – blames his Deputy Doma
The new import tax
Misrata Chamber of Commerce holds meeting with companies to discuss HoR’s new tax bill
107 HoR members state that they have not issued the decision to impose new import taxes
CBL devalues Libyan dinar by 13.3 percent to LD 5.56 per dollar
CBL’s latest revenues and spending data reveals a dinar surplus but a dollar deficit
