Warning over rising salary costs and the impact of oil prices
LIBYA – Marei Al-Rahil, head of the High Council of State’s Finance Committee, has forecast that the annual salary bill would reach about 105 billion dinars once the unified salary scale is applied, arguing that covering this spending could require oil to sell at 100 dollars a barrel.
Fears of a deficit if oil falls to 70 dollars
According to the Al-Raed news network, Al-Rahil explained that a fall in the oil price below 100 dollars a barrel could lead to a real crisis in paying salaries, warning that a deficit could be recorded if the price dropped to 70 dollars.
A 4% income tax and proposals for extra revenue
“We have put forward several proposals to provide additional revenue, chief among them reintroducing income tax at 4%, which could bring in about 4 billion dinars, as well as activating the national ID number,” Al-Rahil said.
He added that the proposals also include raising health insurance contributions to 5% and encouraging employees to move to the private sector in return for the payment of their social security contributions and early retirement.
