Over 660 Billion ZDZ Are Out Of Control In Car Markets

date 2016/10/11 views 244 comments 0

icon-writer Walid.A/English version: Dalila Henache

Algeria counts more than a million operation of buying and selling used, annually, with a financial value of billions of dollars that are traded outside the official framework, as the public treasury does not benefit from the sales, which made the public authorities intend to regulate the used cars' market, in search of new financial resources.

According to figures of the National Bureau of Statistics, more than 618 thousand cars had different owners in the second half of last year, while the process reached during the last six months over 776 thousand cars, and based on the average price of the old cars that reached the limits of 100.000 ZDZ, the financial cost exceeded 660 billion dinars (66 thousand billion centimes), ie $ 5.5 billion, a sum that is far beyond the process of buying new cars.

The fact that this amount of money is too large, and is away from the formal frameworks, making the public treasury face considerable loss, the government was guided by the need to adjust the market, through its involvement in the process, but the form of intervention is not yet clear.

These figures came after the statements of the Commerce Minister, Bakhti Belaiab, about the government's intention to relaunch the formula of importing cars less cars than 3 years old, according to the special conditions that would protect the consumer, and which will be determined later, causing large murmurs among the Algerians, that spread to the government.

Government rushed, on the lips of the Minister of Industry and Mines, Abdessalam Bouchouareb, to deny the existence of such a proposal in the Finance Bill, that would grant licenses to import the used cars, as he said in response to his colleague; "Relaunching the import of used cars is improbable, whether by individuals or dealerships".

Government was not the only party that refused to adopt this proposal, but the party to which it belongs, which was expressed by the official spokesman of the RND Chihab Seddik, saying that "It is a popular proposal", the description that was confirmed later by the party's General Secretary, Ahmed Ouyahia .

Despite the large controversy, but the government confirmed its intention to intervene in the used cars' market, according to statements of Bouchouareb just days before, when he said that a book of conditions that will organize the used cars' market is under preparation, there are teams that are working on it, and these conditions will be announced when they are ready, and based on the book of conditions a market for used cars would be created ".

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