Professor of Economics at the Faculty of Economics and Political Science Younis Abu Shaiba told our source that the Finance Minister issued Resolution No. 160 on April 6, 2026, which abolished the previously applied discounted rates, causing the customs dollar rate to rise by nearly three times. As a result, customs duties on all imported goods increased by more than threefold.
He explained that although the government justified the decision as a reform measure aimed at unifying customs valuation standards and increasing public revenues, the true nature of the measure is essentially a transfer of the indirect tax burden onto citizens. This, he said, will trigger a severe inflationary wave without any guarantees that the additional revenues will be redirected toward improving public services.
Abu Shaiba added that Libya’s economy, which depends on imports for more than 90% of its needs, will face a comprehensive shock. Food products, which account for around 39% of the consumer basket, face a direct threat to food security, particularly for low-income groups.
He noted that prices of electronic and household appliances such as phones, computers, refrigerators, and washing machines will rise beyond consumers’ purchasing power. Meanwhile, construction materials including iron, cement, and ceramics will become more expensive, leading to record increases in rental costs. He also highlighted that vehicle spare parts, including tires, oils, and batteries, will increase transportation and shipping burdens.
He further stated that the risks are not limited to imported goods alone but also extend to local production. Since production inputs—including raw materials, machinery, and equipment—are themselves imported, domestic production costs will rise by similar margins. This will reduce the competitiveness of local products and increase their prices as well, further intensifying the hardship.
Abu Shaiba explained that amid rising inflation driven by higher imported goods prices, citizens’ real incomes will gradually decline. While most salaries remain fixed, prices continue to rise, leading to an erosion of purchasing power and widening the daily economic struggles faced by millions of Libyans.
He continued by saying that the logical alternative before implementing the decision would have been for the government to begin genuine reforms in the customs system, including strengthening oversight at ports and border crossings, improving mechanisms to combat smuggling and corruption, unifying procedures, and enhancing financial transparency.
According to Abu Shaiba, these reforms could have increased revenues without imposing additional burdens on citizens and could have reduced the informal economy.
He concluded that the decision cannot be described as anything less than an economic injustice against Libyan citizens, as it places the cost of repairing a flawed financial system on the public without addressing the root causes of the problem.
He argued that increasing revenues through raising the customs dollar rate without reforming the system represents a treatment of symptoms rather than causes, and will ultimately lead to further erosion of purchasing power and increased daily hardship for millions of Libyans.
