Economic expert Suleiman Al-Shahoumi told our source that the issue of imposing taxes must fundamentally be based on a specific economic program and a framework included in what is called the state’s general budget, with a clear objective behind each tax. For example, taxes should be imposed to improve government revenues or to protect local production, particularly consumption and production taxes, which legally aim to protect local consumption and production in Libya.
He added that the real concern is whether the tax law was used for its intended purpose or exploited merely to generate financial resources for public spending, especially given the loss of official revenues, primarily from oil, which are part of the state budget. He noted that the Central Bank currently reports a decline in revenue and failure to transfer it to its accounts, indicating a major institutional gap in revenue remittance to the bank.
Al-Shahoumi emphasized that there must be clarity in the process of imposing taxes or fees under the law, which should align with the legislative framework and the general state budget. The Libyan state must determine whether there is a deficit and how it will be addressed, noting that there is currently a problem even with regular revenues flowing from oil exports.
He added that the parliament must justify the issuance of such laws, clarify which authority requested it, why it was proposed, and why it was enacted. Before issuing such laws, the parliament should first approve the state’s general budget, specifying revenues and expenditures, and ensure accountability for any shortcomings in revenue remittance or public spending.
Al-Shahoumi concluded that if the upcoming parliamentary session is intended for accountability and understanding the economic situation, involving the Central Bank board and national oil authorities, it should also provide clear answers to the public regarding:
- The Central Bank’s justifications for adjusting the exchange rate
- The reasons behind imposing consumption and production taxes
- The state of the general budget
- The role of oversight authorities in ensuring proper revenue flow to the Central Bank accounts
He also highlighted the need for parliament to address high-priority issues such as fuel smuggling and related corruption, referencing actions taken by the Attorney General, stressing that these matters must also be discussed and clarified during the session.
