The Concept of Public Fee and the Basis for its Imposition in Libyan Law

Abstract

The financial fee constitutes a form of public revenue on which the state relies to finance its public treasury. It is a monetary amount paid compulsorily by the obligated party, whether a natural or legal person, to the state or one of its public institutions, in exchange for a specific benefit conferred upon them. Since this fee represents a deduction from the obligated party's funds and directly affects their financial rights, the legislator has surrounded it with constitutional protection. This protection is manifested in the legal basis for imposing the financial fee and the restriction of the executive authority to this foundation. This study aims to clarify the concept of the financial fee, its characteristics, and the distinction between it and the tax. The significant similarity between fees and taxes often leads to confusion, as some public revenues are alternately referred to as taxes and fees. For instance, the fee imposed on the foreign exchange rate and customs fees are often labeled as a tax on the foreign exchange rate or a customs tax. The research problem addressed in this study has two main aspects: first, the lack of clear differentiation between fees and taxes, which has resulted in inconsistent terminology, and second, the potential for the executive authority to exceed the legal basis in imposing financial fees, thereby instituting fees that violate legal provisions. This research seeks to clarify the legal foundation of financial fees and the restrictions placed on the executive authority in determining and setting their rates.