Algerian Lawmakers Consider Tax Exemptions

by Ulrika Lomas, Tax-News.com, Brussels

15 November 2013

The Finance and Budget Committee of the Algerian National People's Assembly (APN) has examined a raft of amendments designed to "enrich" the country's 2014 finance bill (PLF 2014), primarily aimed at extending the scope of existing tax breaks.

According to Committee President Khalil Mahi, the proposals include plans to extend the tax exemptions accorded to investors in Algeria's southern provinces, and to accord tax exemptions for the production of urea, ammonia, and zinc, as part of efforts to encourage the domestic production of fertilizers.

Furthermore, the amendments call for the introduction of tax incentives to benefit entrepreneurs electing to invest in housing construction in Algeria. Finally, the Committee is considering plans to accord tax relief to individuals for the collection of used paper and household waste.

Explaining the draft finance law, Algerian Finance Minister Karim Djoudi underlined that the aim of the PLF 2014 is to encourage the establishment of banking institutions throughout Algeria, to preserve the purchasing power of individuals, and to encourage investment in Algeria, notably via a reduction in the tax burden.

Highlighting the fact that the tax burden in Algeria is already "very low," and pointing out that the Government currently spends DZD500bn (USD6bn) annually on tax breaks, Finance Minister Djoudi firmly ruled out the idea of a cut in the corporate tax rate (IBS) or in the professional business tax rate (TAP), either now or in the future. Algeria's TAP tax currently serves to generate DZD300bn a year for the communes, Djoudi noted, insisting that abolishing the levy would be a tough blow for local finances.

The APN is due to vote on the PLF 2014 shortly.

TAGS: individuals | Finance | tax | investment | business | tax incentives | mining | law | banking | entrepreneurs | corporation tax | Algeria | tax breaks | construction | individual income tax

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