The Economic Constitutionality of Libyan Tax Law No. (7) of 2010

Abstract

The paper aims to analyze the compatibility of the economic provisions contained in Libyan Tax Law No. (7) of 2010 with the constitutional principles applied in Libya, such as justice, equality, and the legality and non-retroactivity of taxation. Taxes are considered a central tool in the state's fiscal policy, influencing individuals and productive sectors, and serving as the primary source for financing public expenditure. The research highlights that while Law No. (7) of 2010 represents an important step; practical application has raised questions regarding the harmony between its economic provisions and the governing constitutional principles, especially concerning tax justice and equality.

The study follows a descriptive and analytical methodology and is structured to first define the tax concept and its economic nature, then examine the constitutional principles governing taxation in Libya. The findings indicate a partial compatibility between the law and the constitutional principles, as the law adheres to the legality, non-retroactivity, and transparency principles through tax brackets and exemptions. However, the paper concludes that there is a need to strengthen executive oversight, review tax brackets and exemptions to ensure fair burden distribution, and develop legislation to use tax as a tool for economic development and protection of small and medium enterprises.