{"id":255997,"date":"2026-01-18T16:40:37","date_gmt":"2026-01-18T14:40:37","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=255997"},"modified":"2026-01-18T16:40:37","modified_gmt":"2026-01-18T14:40:37","slug":"exclusive-from-wheat-to-luxury-cars-production-and-consumption-taxes-redraw-libyas-market-prices-in-2026","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/exclusive-from-wheat-to-luxury-cars-production-and-consumption-taxes-redraw-libyas-market-prices-in-2026\/","title":{"rendered":"Exclusive: From Wheat to Luxury Cars\u2026 Production and Consumption Taxes Redraw Libya\u2019s Market Prices in 2026"},"content":{"rendered":"\n

Our source obtained the decision of the Libyan House of Representatives<\/strong> regarding the imposition of a production and consumption tax and regulatory fees on a number of goods and capital assets for 2026, as part of efforts to regulate commercial activity and enhance public revenues.<\/p>\n\n\n\n

The decision obliges companies, production units, and commercial operators involved in importing, manufacturing, or providing services to register with the Tax Authority, obtain a tax identification number, and maintain approved and stamped records from the Customs Authority showing production volumes and quantities subject to tax, to be retained for no less than five years.<\/p>\n\n\n\n

It also stipulates the submission of a monthly tax return for taxable goods within the first ten days of the following month, with the tax to be paid immediately upon completion of production and prior to sale. Any sale conducted without a prior tax payment certificate shall not be recognized.<\/p>\n\n\n\n

The decision further requires companies requesting foreign currency to provide proof of payment of wages and salaries tax and social security contributions, and that the main source of funds be generated from sales through electronic payment methods.<\/p>\n\n\n\n

With regard to imports, the decision mandates payment of the production and consumption tax upon opening a letter of credit into a special account at the Central Bank of Libya<\/strong>, and prohibits the settlement of external payments or the release of goods unless the due tax has been paid.<\/p>\n\n\n\n

A regulatory fee of 12% was imposed on the import of long-term capital assets with a productive life exceeding seven years, along with the payment of 13% as a guarantee upon opening the letter of credit, provided that the value of investments exceeds 20 million dinars and that 30% of them are offered for public subscription.<\/p>\n\n\n\n

The decision tasked the Ministry of Economy and Trade<\/strong> with monitoring commodity prices, combating monopolistic practices, and reassessing tax rates every four months in coordination with the relevant authorities. It also calls for the preparation of a detailed guide for classifying goods in accordance with the Harmonized System (HS Code).<\/p>\n\n\n\n

The decision further stipulates that the Central Bank of Libya shall not settle external payments unless documentation proving payment of the production or consumption tax is submitted. This document is considered essential among the required documents to close letters of credit opened prior to the issuance of this decision and not yet closed, in accordance with Article (99) of the Customs Law. Without prejudice to any other fees or taxes imposed by applicable legislation, the Customs Authority is required to ensure that goods subject to production or consumption tax are not withdrawn from customs zones unless the tax due has been paid, effective from the date of issuance of this decision.<\/p>\n\n\n\n

In its final article, the decision \u043e\u0442\u043c\u0435\u043dates the application of any estimated customs dollar rate and adopts the cost of acquiring foreign currency from commercial banks. It also repeals the 2024 decision imposing a fee on foreign currency sales.<\/p>\n\n\n\n

According to the decision adopted by the House of Representatives, the following goods are subject to production or consumption tax rates:<\/p>\n\n\n\n