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Currency exchange tax is contrary to sharia, says Libyan mufti

Currency exchange tax is contrary to sharia, says Libyan mufti

The letter sent by the president of the Central Bank of Libya to the president of the country’s House of Representatives, Aguila Saleh, regarding the introduction of a tax on currency exchange, contradicts the laws of Islamic Sharia, said the Grand Mufti of Libya , Sheikh Sadiq al-Ghariani, reported the Libyan channel The Libya Observer on March 16.

According to Ghariani, whoever asks to tax people to unjustly take them out of their pockets is acting against the laws of Islamic Sharia.

According to Gariani, there are two types of taxes: a tax in exchange for services, for example, the services that a bank provides to its clients, or a tax on the issuance of licenses, or a tax on traffic or the use of ports. , which is allowed and is called a fee and is allowed if the counterparty fulfills the service they promised, and then it is called admissible tax because it is money received in exchange for the service.

“To say that other taxes, such as the income tax or the exchange rate tax, which are the imposition of a tax without providing a service, is one of the biggest sins, because it is a usurpation of the people’s money.”Gariani said.

Mufti also emphasized that a tax is levied when there is a real and concerted interest that the country cannot improve without it.

“If the tax is tried and agreed upon as the only means by which people can be saved, and not a penny has been spent on benefits and travel, then it is included in the allowable tax.”Gariani said.

Let us remember that on March 14, 2024, the president of the Libyan Parliament, Aguila Saleh, issued a decree introducing a 27% currency exchange tax. The new tax will be introduced until December 31, 2024.

We also recall that on March 10, 2024, a trilateral meeting took place in Cairo under the auspices of the League of Arab States, which was attended by the president of the House of Representatives of Libya, Aguila Saleh, the president of the Presidential Council of Libya, Mohamed Menfi, and the Head of the Supreme Council of State of Libya, Mohamed Takala.

The result of the meeting was the decision to form a new unified government in Libya, which will hold elections.

This decision marks the removal from power of Abdel Hamid Dbeibah, head of the Interim Government of National Unity of Libya, formed after the Geneva conference.

The agreement signed in Geneva ended on June 21, 2022, but Dbeibah refused to leave office and, relying on armed groups in the capital, continued to serve as prime minister.

Source: Rossa Primavera

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