Libya to lift duties on imports

TRIPOLI – Libya will lift existing duties on all imported goods, except cigarettes, next month in a bid to spur trade and make the country a free trade zone linking Europe to Africa, the trade minister said yesterday.

Abdelkaer Kheir told Reuters the duties would be replaced by a four per cent “service import tax”. “A zero-customs tax except for cigarettes will activate Libya’s trade and boost the country’s role as services importer and encourage re-exports and commerce transit,” Kheir said.He said duties brought between 400 million and 600 million Libyan dinars to the state budget, but he expected to make up for the budget loss through direct taxes in expanded trade and growth.”Libya imposed duties on 3 500 goods among 5 000 goods in the past but beginning next month all duties will be lifted except for cigarettes and these duties will be replaced by 4,0 per cent taxes called service import taxes,” he added.Libya celebrates the 36th anniversary of leader Muammar Gaddafi takeover in a bloodless military coup on September 1, which will coincide the lift of duties.The country returned to the mainstream of international politics after Gaddafi pledged to abandon programmes of prohibited weapons in 2003.Tripoli has begun opening up its economy to foreign investors, including in non-oil sectors and expanding the role of the private sector into its once-dominated socialist economy.It plans to privatise hundreds of state-owned enterprises and lift restrictions on foreign trade to spur growth in the non-oil economy to create jobs for thousands of job seekers, mostly young university graduates.”The lifting of duties is part of measures aimed at encouraging the commerce of transit and trade services.That will help create incomes for more people and lower the prices of goods for consumers,” Kheir said.”These measures will help creating more jobs and encourage more Libyans to enter the transit commerce activity,” he added.Local economists estimate the value of Libya’s imports at between US$4,5-5,0 billion, most of them in food as Libya imports wheat, sugar and other basic agriculture products to feed its five million population.-Nampa-Reuters”A zero-customs tax except for cigarettes will activate Libya’s trade and boost the country’s role as services importer and encourage re-exports and commerce transit,” Kheir said.He said duties brought between 400 million and 600 million Libyan dinars to the state budget, but he expected to make up for the budget loss through direct taxes in expanded trade and growth.”Libya imposed duties on 3 500 goods among 5 000 goods in the past but beginning next month all duties will be lifted except for cigarettes and these duties will be replaced by 4,0 per cent taxes called service import taxes,” he added.Libya celebrates the 36th anniversary of leader Muammar Gaddafi takeover in a bloodless military coup on September 1, which will coincide the lift of duties.The country returned to the mainstream of international politics after Gaddafi pledged to abandon programmes of prohibited weapons in 2003.Tripoli has begun opening up its economy to foreign investors, including in non-oil sectors and expanding the role of the private sector into its once-dominated socialist economy.It plans to privatise hundreds of state-owned enterprises and lift restrictions on foreign trade to spur growth in the non-oil economy to create jobs for thousands of job seekers, mostly young university graduates.”The lifting of duties is part of measures aimed at encouraging the commerce of transit and trade services.That will help create incomes for more people and lower the prices of goods for consumers,” Kheir said.”These measures will help creating more jobs and encourage more Libyans to enter the transit commerce activity,” he added.Local economists estimate the value of Libya’s imports at between US$4,5-5,0 billion, most of them in food as Libya imports wheat, sugar and other basic agriculture products to feed its five million population.-Nampa-Reuters