The Impact of Direct and Indirect Tax Revenues on Supporting Public Revenues in Libya: An Applied Study for the Period 2010–2024

Abstract

This study aims to identify the impact of direct and indirect tax revenues on supporting public revenues in Libya, measure the contribution of each to public revenues, and determine the extent of balance between these taxes, thus reducing the risks of relying on oil revenues to support public revenues in Libya. To achieve the objectives of this study, descriptive and analytical statistics were followed using statistics contained in the reports of the Central Bank of Libya and the Libyan Tax Authority over a period of (15) years (2010 - 2024). Inferential statistics were also followed to measure the impact of independent variables on the dependent variable. This study reached a number of conclusions through descriptive statistics, the most important of which is the weak contribution of direct and indirect tax revenues to financing the state's public revenues, in addition to the presence of an insignificant positive impact of direct and indirect tax revenues in financing the state's public revenues. The most important reasons for this are the political, security and health instability that Libya experienced during most of the study years, and the lack of a tax administration capable and effective in carrying out collection and collection procedures.