Libya has abolished the so-called "Jihad Tax" with effect from August 2025. The tax had been levied at rates of up to 3% on individual employment and pension income, and at rates of up to 4% on corporate profits. Libya's Ministry of Finance issued an official directive for its repeal on 2 July 2025. The directive was made to comply with a ruling issued by the Libyan Supreme Court in February 2025, which declared that the 1970 law authorizing the tax was unconstitutional.