National Assembly Reviews 2027 Finance Law for Economic Stimulus
The Finance and Budget Committee of the National People's Assembly is actively engaged in its study of the 2027 Finance Law project. This critical parliamentary review involves listening to officials from the General Directorate of National Property and the General Directorate of Taxes, who are presenting proposed measures aimed at bolstering the national economy. The core objectives of the proposed law include stimulating productive investment, diversifying the economy, and preserving the purchasing power of citizens.
Key proposals presented by the General Directorate of Taxes are designed to encourage investment. These include a ten-year tax exemption for venture capital collective investment bodies and mutual investment funds. Additionally, imported equipment acquired through donations would be exempt from duties and taxes. To further support growth, a 30 percent tax reduction for five years is proposed for profits of unlisted companies where venture capital bodies or investment funds contribute at least 30 percent. Concurrently, the General Directorate of National Property anticipates collecting 126 billion dinars in revenue for 2027, with 29 new measures proposed in national property, including efforts to enhance the collection of public treasury receivables.
To safeguard citizens' purchasing power, the 2027 Finance Law project includes provisions to renew and expand tax and customs privileges. These apply to the importation of red meat, live cattle, and sheep intended for slaughter, with the privileges now extending to cattle for fattening. The project also proposes extending the exemption from Value Added Tax (VAT) to cover imported and locally produced dry legumes, fresh fruits and vegetables, consumer eggs, broiler chickens, and turkeys, aiming to reduce costs for essential goods.
Further measures within the law address the expansion of the tax base and resource mobilization, through the imposition of additional taxes on specific activities and an increase in the additional tax rate on certain items, with the resulting revenues earmarked for the state budget. The project also seeks to modernize tax administration by mandating remote declaration and payment for taxpayers under the lump-sum tax system and offering tax reductions for those demonstrating turnover via electronic payment. Moreover, an exceptional voluntary tax settlement system is proposed for unregistered resident natural persons, involving a simplified 12 percent tax. Parliamentarians have also advocated for stringent enforcement against tax-evading foreign companies, including blacklisting, updating deterrent measures in the penal code, and strengthening controls to combat the hard currency black market.
