The proposed 2026 Finance Law, presented to the National People’s Assembly by Finance Minister Abdelkrim Boualzred, includes key amendments focused on enhancing tax justice and facilitating tax settlements. The presentation sparked extensive debate, requiring extended sessions to accommodate the interventions of 258 deputies, according to Assembly Speaker Ibrahim Boughali.
The Finance and Budget Committee’s preliminary report emphasizes that the amendments aim to improve the clarity of legal texts and promote fairness in taxation. This balance seeks to ensure effective tax collection while simultaneously encouraging economic activity. Committee Rapporteur, Abbas Hussein, highlighted that the revised draft incorporates linguistic corrections to 32 articles, ensuring accuracy and clarity in legal terminology. Furthermore, substantive amendments address various fiscal and regulatory aspects.
Stricter Penalties for Tax Evasion
A prominent feature of the proposed amendments is the introduction of stricter tax penalties for tax evaders. These measures specifically target cases involving fraudulent practices or organized networks that utilize information and communication technologies.
Voluntary Tax Settlement Initiative
The draft law introduces an exceptional voluntary tax settlement procedure. This allows taxpayers to make a simplified declaration and pay a 10% tax rate without penalties before December 31, 2026. Participants are guaranteed immunity from prosecution. This initiative aims to recover undeclared funds and broaden the tax base.
New Exemptions and Purchasing Power Support
The amendments also include expanded customs and tax exemptions for imported live sheep and cattle during the Eid al-Adha celebrations in 2025 and 2026. Additionally, vehicles belonging to Algerian companies abroad, diplomatic missions, and international organizations will be exempt from fuel consumption tax.
Decentralization and Youth Investment Incentives
A new mechanism has been established to grant concessions on state-owned land in small-scale activity zones to young entrepreneurs. Governors are empowered to authorize and review applications, streamlining the process and promoting youth investment.
DZWatch will continue to provide updates as the 2026 Finance Law progresses through the legislative process.
