“Badr Naghib”: Tax on goods does not mean raising prices for citizens.

February 2, 2026
libyawire
Economy
0

The head of the Economic Committee in the Libyan House of Representatives questioned the imposition of taxes on certain goods for production or consumption. Does the decision mean raising prices for citizens? The answer is “no.” Prices, especially for luxury goods, are already high and are priced based on an exchange rate close to 10 dinars to the dollar. The decision does not add a new burden; rather, it addresses an existing distortion and limits speculation.

He continued: What about essential goods? Essential goods are protected. They are currently priced at an average of about 7.65 dinars to the dollar and are subject to very low or symbolic tax rates. The citizen’s purchasing power will not be affected. Why does the state impose a tax on some goods? The goal is not revenue collection, but rather: regulating imports and reducing unnecessary demand.

The committee head confirmed that protecting foreign currency reserves achieves social justice. So how does the decision contribute to lowering prices? By: reducing artificial demand for the dollar, curbing smuggling and speculation, controlling invoices and prices, and redirecting consumption towards necessary goods.

He also asked: Will the decision affect the availability of foreign currency? On the contrary, the decision aims to enable the Central Bank of Libya to provide foreign currency to all vital sectors instead of depleting it on luxuries. How does the decision protect state reserves? By: reducing unproductive imports, preventing the sale of dollars at a low price without achieving price stability, and regulating credits and linking them to real economic activity. What is the decision’s relation to combating corruption? The decision: reduces opportunities for invoice manipulation, limits smuggling through ports, strikes at the profits of those who exploited the distortions of the current system, and lowers the margin of corruption related to the allocation of foreign currency. Is the decision socially just? Yes. It protects those with limited income, places the greater burden on luxuries, and achieves a balance between consumption and resources.

Will the decision affect the labor market? Positively. It links imports to real economic activity and actual employment, and encourages productive employment instead of speculative trade. What is the decision’s relation to the Libyan dinar? The decision: enhances the purchasing power of the dinar, limits pressure on the exchange rate, and restores confidence in the national currency. Is this decision temporary or permanent? The decision is subject to periodic review, and its rates will be reviewed every few months according to market developments, ensuring flexibility and no harm to the citizen. Is this an isolated step? “No.” It is the first step in a reform path linking: trade policy, industrial policy, and labor policy with fiscal and monetary policy. What is the core message to the citizen? That the state: protects your purchasing power, preserves your resources, and works towards a more just and stable economy.

Libya

Libya is a North African country with a rich history rooted in ancient civilizations like the Phoenicians and Romans, followed by centuries of Arab and Ottoman influence. In the modern era, it was an Italian colony before gaining independence in 1951, later becoming known for Muammar Gaddafi’s lengthy rule from 1969 until the 2011 revolution. Its cultural heritage includes UNESCO World Heritage sites such as the ancient Greek city of Cyrene and the Roman ruins of Leptis Magna.

Libyan House of Representatives

The Libyan House of Representatives is the internationally recognized legislative body of Libya, formed in 2014 following the country’s second civil war. It replaced the General National Congress and is based in the eastern city of Tobruk, operating in a context of ongoing political division and conflict with a rival administration in Tripoli.

Central Bank of Libya

The Central Bank of Libya, headquartered in Tripoli, was established in 1956 following the country’s independence to manage its currency and monetary policy. It has played a critical and often contentious role throughout Libya’s modern history, including during the Gaddafi era and the subsequent civil conflicts, where control of the bank and its assets became a major point of political and economic division.

Libyan dinar

The Libyan dinar is the official currency of Libya, introduced in 1971 to replace the Libyan pound. Its issuance is managed by the Central Bank of Libya, and its history is closely tied to the country’s political and economic changes following the discovery of oil.