Eastern Libya Customs Authority rejects the abolition of the preferential 'customs dollar' under Decision 160-2026

Summary: The East Libyan parallel authorities rejected the 6 April 2026 decision by the Government of National Unity's Ministry of Finance (Decision No. 160-2026) to abolish the preferential "customs dollar" rate. Eastern customs and financial bodies moved to maintain the old lower rate of 2.12 LYD per U.S. Dollar.

NOTE: Pursuant to Decision No. 160-2026, the Tripoli and Misrata Customs Authorities have begun applying the calculation method based on the CBL's daily exchange rate.

Below is the link to the full text of the news article:

https://www.libyaakhbar.com/business-news/2773993.html

Decision No. (160) dated April 6, 2026 on abolishing the discounted "Customs Dollar" rate

Summary: Libya's Ministry of Finance issued Resolution No. 160, officially abolishing the discounted "customs dollar" rate (previously fixed around 2.12 to 2.25 LYD). Importers must now calculate customs duties using the unified official exchange rate set (daily) by the Central Bank of Libya (CBL).

Below is the link to the full text of the Decision (Libyan Customs Authority website):

https://customs.gov.ly/legislation/mof-decrees/

Pre-decision calculation (example: imported goods priced at USD 1,000,000):

USD 1,000,000 × USD/LYD 2.12 = LYD 2,120,000.

Customs Duty = 2,120,000 × 5% = LYD 106,000

Calculation after the decision (Example: imported goods priced at USD 1,000,000):

USD 1,000,000 × USD/LYD 6.35* = LYD 6,350,000

Customs Duty = 6,350,000 × 5% = LYD 317,500

(*) Central Bank of Libya’s official exchange rate on the day/date of the customs transaction.

Repeal of the "Jihad Tax Act" by the Libyan Supreme Court Decision dated February 3, 2025

Pursuant to the Libyan Supreme Court decision dated February 3, 2025, the “Jihad Tax” has been repealed.

Summary: The 4% Jihad tax levied on the 20% corporate tax imposed on foreign construction companies operating in Libya, as well as the 3% Jihad tax applied to employees’ salary and wage (personal income) taxes, has been ABOLISHED.

NOTE: The Tax Authority suspended the collection of the Jihad Tax in February 2025. Furthermore, in accordance with a Supreme Court ruling, jihad taxes collected in previous years will not be refunded to taxpayers.

Below is the link to the full text of the news article:

https://lawsociety.ly/ruling/%D8%A7%D9%84%D8%B7%D8%B9%D9%86-%D8%A7%D9%84%D8%AF%D8%B3%D8%AA%D9%88%D8%B1%D9%8A-5-64-%D9%82/