Regulatory Alerts2024-10-07
Central Bank of Libya Circular No. 14/2024
The Central Bank of Libya issued Circular No. 14/2024 to implement Parliament Speaker Decision No. 68 of 2024, which reduces the official foreign exchange rate tax to 20% for all purposes. The circular mandates banks to resume the personal goods system and facilitate documentary credit procedures for all goods and services effective immediately. Furthermore, it directs that the collected tax revenue be allocated to developmental projects or added to the Central Bank's public debt repayment reserves, subject to parliamentary exceptions.
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Central Bank of Libya P.O. Box 1103 | Telegram Address: MisrLibya - Tripoli - Libya
Reference: A.R.M.N. (731)
Circular No. 14/2024 Date: 6 October 2024 (3 Rabi' al-Thani 1446 AH)
To: General Managers of Banks Greetings,
Based on the provisions of Law No. (1) of 2005 concerning Banks, and its amendments, and within the framework of the supervisory and regulatory role exercised by the Central Bank of Libya over banks in accordance with the aforementioned law.
And referring to Circular No. 05 issued on 19 March 2024, which forwarded the decision of the Speaker of the House of Representatives No. 15 of 2024, issued on 14 March 2024, mandating a tax on the official exchange rate.
We inform you that the Central Bank of Libya has received a letter from the Acting Director of the President's Office at the House of Representatives, Reference No. M.Sh.R 1667-, dated 06 October 2024, which forwarded a photocopy of the decision of the Speaker of the House of Representatives No. 68 of 2024, issued on 06 October 2024, concerning amending the value of the tax imposed on the official exchange rate.
And as we forward to you the aforementioned decision of the Speaker of the House of Representatives No. 68 of 2024, it requests that you take the necessary measures to implement its provisions, resume operations of the personal goods system, and facilitate documentary credit procedures for all purposes and for all goods and services, effective from the date of issuance of this circular.
Peace be upon you,
(Signature) Abdul Magid Mohammed Al-Maqouri Director of Banking and Currency Supervision
Copies to:
- To the Governor
- To the Deputy Governor
- To the Acting Director of the President's Office at the House of Representatives
- To the Director of Banking Operations Department, Central Bank of Libya
- To the Director of Accounts Department, Central Bank of Libya
- To the Director of Legal Affairs Department, Central Bank of Libya
- To the Director of the Libyan Credit Information Center, Central Bank of Libya
- To the Director of the Libyan Financial Intelligence Unit, Central Bank of Libya
- To the Deputy Director of Banking and Currency Supervision Department for Office Supervision and Compliance Follow-up
- To the Banking Follow-up and Compliance Monitoring Section
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State of Libya House of Representatives President's Office
Date: 06.10.2024 AD Reference: M.Sh.R. 1667.2024
To the Respected, - Governor of the Central Bank of Libya - Deputy Governor of the Central Bank of Libya
Greetings,
We hereby forward to you a photocopy of the decision of the Speaker of the House of Representatives No. (68) of 2024 AD, issued on 3 Rabi' al-Thani 1446 AH corresponding to 2024/10/06 AD, concerning amending the value of the tax imposed on the official exchange rate, for your kind consideration to put the decision into implementation and take what is necessary regarding it.
Please accept our highest appreciation and respect, Peace be upon you.
(Signature) Osama Mohammed Yunus Acting Director of the President's Office
Copies to:
- Speaker of the House of Representatives
- First Deputy Speaker of the House of Representatives
- Second Deputy Speaker of the House of Representatives
- Secretary General of the House of Representatives
- President of the Diwan (Secretariat) of the House of Representatives
- General Affairs File
- Osman Al-Maghrebi / Presidency and Decisions Department
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State of Libya House of Representatives Decisions
Decision of the Speaker of the House of Representatives No. 68 of 2024 AD Concerning amending the value of the tax imposed on the official exchange rate
Having reviewed:
- The Provisional Constitutional Declaration issued on 3 August 2011 AD and its amendments.
- Law No. (10) of 2014 AD concerning the election of the House of Representatives.
- Law No. (4) of 2014 AD concerning the adoption of the internal regulations of the House of Representatives.
- The State Financial Law and the Budget, Accounts, and Stores Regulations.
- Law No. (1) of 2005 concerning Banks and its amendments.
- Law No. (7) of 2010 AD concerning Income Tax, and its amendments.
- Law No. (10) of 2010 AD concerning Customs.
- Law No. (13) of 2010 AD concerning Commercial Activity, and the executive regulations issued pursuant thereto.
- Law No. (30) of 2023 AD concerning the establishment of a general reserve to repay public debt.
- And based on the proposal by the Governor of the Central Bank of Libya, Mr. Naji Mohammed Issa, and Deputy Governor Mr. Marwi Miftah Al-Bar'asi, to reduce the value of the tax imposed on the exchange rate.
The following decision has been issued:
Article One The value of the tax imposed on the official exchange rate for foreign currencies is reduced to 20% for all purposes, such that the exchange rate shall include this percentage, with the possibility of reducing it according to the conditions of Libyan state revenues during the validity period of this decision.
Article Two The revenue realized from the tax shall be used to cover developmental project expenses if needed, or shall be added to the resources allocated at the Central Bank of Libya for repaying public debt, pursuant to House of Representatives Law No. (30) of 2023 AD, with due regard to exemptions granted by the Speaker of the House.
Article Three The provisions of this decision shall be effective from its issuance date, and each concerned party shall implement it.