The constitutional basis of tax policy in Libya: A legal-economic analysis

Abstract

This research explores the constitutional basis of tax policy in Libya, specifically examining the alignment of the Income Tax Law No. 7 of 2010 with the 2011 Constitutional Declaration. The study adopts an analytical and economic approach to evaluate how constitutional principles like legality, equality, and tax justice are integrated into tax legislation. It addresses the tension between the state's need for financial resources and the protection of taxpayers' rights, highlighting how adherence to constitutional constraints enhances the efficiency of fiscal policy and promotes economic stability. The findings indicate that while a constitutional framework exists, there is a need for stronger judicial oversight and legislative refinements to ensure that tax tools effectively support investment and social justice without violating individual rights.