Tax Rates Steady to Preserve Purchasing Power
Algeria's 2027 Finance Law project has been lauded for its financial and economic objectives, which aim to reinforce budgetary balances and narrow the gap between revenues and expenditures. The Director General of Taxes, Jamal Hanish, confirmed that the project specifically avoids any increase in tax rates or the introduction of new taxes, a measure designed to preserve the purchasing power of citizens. This direction also aligns with the directives of President Abdelmadjid Tebboune, emphasizing the maintenance of the state's social character.
The law project includes new tax system measures intended to support the national economy's major directions. These encompass tax exemptions directly benefiting low-income earners, alongside extensions of exemptions on various essential consumer goods. Notably, exemptions on the import and sale of dry legumes, vegetables, and fruits have been extended until 2029. Additionally, exemptions on duties and fees related to the import of red meat and livestock, particularly those designated for slaughter, have also been prolonged.
Beyond individual citizens, the tax system is structured to support vital production and processing sectors. Tax measures related to investment and production, as well as activities registered with the Algerian Investment Promotion Agency under Law No. 22-18, are designed to foster economic growth. These measures include exemptions extending up to ten years for specific sectors, regions, and structural projects, thereby contributing to wealth creation and the generation of new employment opportunities, which in turn yield additional tax revenues.
In a related development, the tax authorities are implementing a new organizational and operational strategy. The General Directorate of Taxes has established a dedicated tax control department and a directorate for data management. These initiatives aim to ensure that tax evaders are held accountable, with specialized services now capable of identifying intermediaries, their incomes, and transaction types to facilitate the settlement of their tax situations. The tax administration has also been strengthened by the addition of 1200 trainees, augmenting its existing workforce of approximately 30,000 employees.
