Algeria: “2015 Complementary Finance Law To Be Adopted Through Presidential Injunction”

The 2015 complementary finance law (CFL) in Algeria will be finally adopted by presidential order. The procedure requiring passage through Parliament is now deemed as unsuitable, according to “Echorouk sources”, in view of the urgency of the adverse situation facing the current Government led by Prime Minister Abdelmalek Sellal.

The president of the Republic Mr Abdellaziz Bouteflika is set to sign it shortly without waiting for a debate at the two houses of Parliament including the People’s National Assembly and the Senate.

Accordingly, the Government has already put the finishing touches to the project during an inter-Ministerial Council during which the various departments in charge of key and strategic sectors put forth their various suggestions and proposals for adjustment.

These proposals will be unveiled at a meeting of the Council of Government slated for Wednesday, June 17, before the ultimate validation step during an upcoming Council of Ministers which is expected to be held in July.

It should be noted that an inter-Ministerial Council meeting exclusively devoted to the preparation of the 2015 complementary finance law was held on June 3, 2015. The meeting brought together Ministers in charge of strategic sectors, including finance, energy, industry, in addition to those of housing and culture.

In the meantime, ahead of the measures to be proposed by the various ministerial departments to this effect, the Prime Minister Mr Sellal has already announced that the Government has opted for the revision of the tax on the earnings of companies (IBS) and the tax on professional activity (TAP) to promote production and shore up investment in the context of the 2015 complementary finance law.

Unfavorable economic conditions due to the steady decline in the price of oil have motivated, on the other hand, a recent cabinet reshuffle which allowed to place new Ministers at the head of key departments, such as finance and energy, in addition to notable changes at the head of national public enterprises and institutions such as the Customs services and the Sonatrach hydrocarbons group as well Air Algérie airline Company.

These changes were intended to promote a more rational policy and maximize the revenues of the State, while gearing up towards the diversification of the national economy.