2027 Finance Law Reinforces Budgetary Balance and Growth

The 2027 Finance Law project outlines new fiscal measures designed to reinforce budgetary balances and reduce the gap between revenues and expenditures. These initiatives are intended to support major national economic directions, safeguard citizens' purchasing power, and uphold the state's social character, consistent with presidential directives. Notably, the project does not include any increases in tax rates or the introduction of new taxes, specifically to preserve the purchasing power of citizens.

Specific measures directly benefit limited-income individuals through targeted tax exemptions. Additionally, full Value Added Tax (VAT) exemptions for the import and sale of certain essential goods, including dry legumes, vegetables, and fruits, have been extended until 2029. Exemptions on duties and other charges related to the import of red meat and livestock, particularly those destined for slaughter, have also been prolonged. Furthermore, the fiscal system actively supports vital production and transformation sectors. This includes investment-related tax measures, particularly for activities registered with the Algerian Agency for Investment Promotion, in line with Investment Law 22-18. These provisions offer exemptions lasting up to ten years for specific sectors, regions, and structural projects, thereby contributing to wealth creation and job generation, and ultimately generating additional tax revenues.

Concurrently, the General Directorate of Taxes is advancing a new strategy in its organizational and operational domains. This includes establishing a dedicated tax control section and a data management directorate. These new units are designed to ensure tax evaders face legal accountability and to accurately identify intermediaries, their incomes, and the nature of their transactions, facilitating the regularization of their tax situations. The tax administration has further strengthened its capabilities with the recruitment of 1200 trainees, increasing its workforce, which already comprises nearly 30,000 employees.