Libya

Libya is located in the North of Africa, on the coast of Mediterranean. The country’s area is about 1.76mln km2 with a population of approximately 6mln. Current figures for foreigners are unclear although it is know that the majority of them were from Egypt as well as from surrounding countries, Sudan, Chad, Niger, Algeria and Tunisia. Libya’s coast extends to 1800km, making it by far the longest coastline of the North Africa. Given the fact that 90% of the land is desert, most of the population, about 85%, live on the coast. Libya became an independent country in 1952, the Kingdom of Libya, by virtue of a UN resolution. Previous to this, from 1911 to 1943 the country was colonized by Italy, and after WWII the British and French authorities administered the Libyan territories from 1943 to 1951. The country was considered – according to the UN Economic Mission – as one of the poorest countries in the world, lacking natural or human resources to be developed. At the end of the 1950’s and after extensive search efforts by international oil companies, large oil reservoirs were discovered. The first oil shipment was exported in 1962, with its oil revenues the country embarked on various development programs replacing foreign assistance in the process. These programs concentrated on developing infrastructure sectors, such as education and health. In 1969, a coup d’etat of young military officers, led by Colonel Gaddafi, replaced the country’s political system from a kingdom to a republic. The changeover took place in peaceful way as the King, who was extremely old, had left the country for a trip. Gaddafi, gradually but firmly, took control of the political scene, oftentimes expelling and in some cases killing all forms of opposition, even within his own group of revolutionary officers. The Libyan economy is one that is primarily oil-led, as 95% of total Libyan exports are crude oil. Main recipients of oil exports are European, and in particular Mediterranean European countries. Libya’s GDP for 2010 was estimated to be $100billion, 70% attributed to the oil sector. Imports to Libya are foodstuffs, machinery, finished consumer products, semi-industrialised products and capital goods. These are estimated to be $30billion. Libya has had a positive balance of payments at least during the last five years. Little transparency has existed with regards to where the positive balances have been placed during many years. Investments abroad, ranging from Africa, Europe and America, have recently been a portion of the funds, although much of the funds remain unaccounted for. Looking at other indicators for the country: The country’s official unemployment rate is estimated to be 15% (Libya Planning Dp’t), although other international sources put the estimate at 25-30%. Most of the unemployed are young people, with rates generally higher for women than for men. Official estimates place illiteracy rates at 9% total, 6% for males and 12% for females. Libyans have been well educated, although the quality of education has seen a gradual decrease over the past few years. Public spending on education has decreased year on year to 2.67% of GDP in 1999 (6.92% Tunisia). Current figures (2007) show that a mere 400$/capita is spent on education, versus neighboring Tunisia’s 600$/capita. The poverty rates are not officially provided and the ranges of those living below the poverty line are between 7% and 40%. National subsidies on a few basic foodstuffs had been provided over the years, although this as well has been dut down in recent years. Subsidized housing projects had been planned for many years to provide for the growing Libyan population, but years of delays hampered any real results from materializing, leading to a growing sense of frustration amongst the youth. Although basic healthcare is provided free of charge to all Libyans, it is mostly viewed with distrust. Public health expenditure for 2007 was only 1.9% of GDP, and 5.4% of total government spending, ranking Libya 164 out of 185. The health system is generally not adequate to cover the population’s needs, with many Libyans having to travel abroad for simple procedures. Tunisia and Jordan have been key destinations for the average Libyan due to good quality healthcare at reasonable prices, while Europe is another destination for those with sufficient means. Infrastructure is another area that has been neglected to a large extent, with recent efforts focusing on building up certain areas of Tripoli via hotels and business towers, but with no comprehensive infrastructure projects that would address the basic needs of the society. Basic government services, such as municipality cleaning, maintenance of roads, etc are managed sporadically. Although Libya’s full potential has not been realized in the past, Libyans now have the means and the desire to change their country for the better. (Source: http://www.ntclibya.com)

The classifications of labour expenses, according to Libyan tax law
Top eight Questions about Taxation in Libya
Impact of Arab Spring Countries on Tax Revenue
Arab Spring in Libyan Tax System