Libyan Finance Ministry Halts 'Jihad Tax' Nationwide
The landmark judgment, issued on 3 February 2025 in constitutional appeal no. 64/5Q, declared Law No. 44 of 1970, which authorised the tax, to be in violation of Libya's constitution. The ruling obliges the state to take immediate legal steps to enforce the decision and nullify the tax's legal basis.
The Finance Ministry cited Article 31 of Law No. 6 of 1982 on the restructuring of the Supreme Court, which mandates that all legal principles issued by the court are binding on state authorities, including financial and administrative bodies.
The ruling followed a constitutional challenge filed by Libya's Department of State Litigation against various official entities. While some aspects of the case were dismissed on procedural grounds, the court accepted the challenge against the Ministry of Finance and delivered a decisive verdict voiding the law entirely.
The 'Jihad Tax' was initially introduced to fund Islamic resistance movements against colonial powers, with revenues collected from citizens, employees, and businesses at rates ranging from 1% to 3% of income or profit. These funds were distributed among several institutions, including the Islamic Call Society (20%), the Jihad Fund (25%), and the Ministry of Finance (30%) to support the national budget.
However, since 2011, the tax has faced growing scrutiny amid allegations of mismanagement and lack of transparency, with questions raised over the fate of collected funds. Tags: Finance MinistrylibyaSupreme CourtTax
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