CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Algeria Includes Gold On 'Negative' Tax List

Algeria Includes Gold On 'Negative' Tax List

by Ulrika Lomas, Tax-News.com, Brussels

03 October 2013


Algeria has drawn up a new "negative list" of products that are to be excluded from the customs tax exemption benefiting most products under the terms of the Greater Arab Free Trade Area agreement (GAFTA), which is to include gold.

Under the GAFTA accord, treaty member states have up to four years in which to protect any vulnerable production sectors from the impact of the free trade zone. Algeria has opted to protect its "at risk" sectors via the unilateral application of a negative list for goods imported.

The revised negative list includes 953 products, compared to 1,260 currently. In contrast, Algeria's "positive list" provides exemption from customs duties to 4,784 products. The Government decided to update its negative list to take into account the fact certain products, that have up to now been excluded from customs tax exemption, have never actually been imported from Arab countries. The revision also forms part of efforts to clamp down on fraud and abuse of the tax perk.

Despite the undoubted benefits of the free trade zone, the customs tax exemption has been open to abuse. Fraudsters have taken advantage of the tax break to significantly inflate their import prices. Previously, when a normal tariff system has applied, prices have been kept low to avoid payment of additional customs charges.

Last year, the Algerian Finance Ministry discovered that this type of fraud also involves gold. Consequently, it decided to include gold ores and concentrates on its negative list in order to address the problem.

Algeria's updated negative list will apply from October 1.

TAGS: Finance | tax | Algeria | excise duty | tax breaks | trade | free trade zone

To see today's news, click here.

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »