Algeria: 5 Dinars Of Price Increases For gasoline And 2 Dinars For Diesel

The Algerian Government is considering the enactment of a fiscal bill for the upcoming year meant to impose a wealth tax that would slash between 1 and 3.5 percent of everyone’s wealth, worth more than 5 billion centimes (DA), of whatever form, money or real-estate property.

Prime Minister Ahmed Ouyahia ushered in to this effect the preliminary draft of the Finance Law for the coming year.  A first meeting was held by the executive to discuss the measures taken in this legislative text, which will be followed by other meetings to complete the study of this tax-related file. 

The information that “Echorouk” has already referred to, was confirmed by the Prime Minister on Wednesday in his statements to the press on the sidelines of the parliamentary session devoted to answering questions from the members of the Council of the Nation by Mr Ouyahia regarding the government’s plan of action.

Government sources told “Echorouk” that the imposition of the wealth tax pertains to any Algerian citizen who possesses assets more than 5 billion centimes (DA). 

The executive branch proposes to impose this tax on anyone who owns a fortune that exceeds this financial package by deducting between 1 and 3.5 percent of the total value of his or her property.

The tax on wealth will reach 3.5 percent for all funds and assets exceeding 5 billion centimes. 60 percent of the wealth tax will be designed to finance the state budget and 20 percent for the national housing fund, the same sources indicated.

On the basis of the upward rule, anyone who owns a fortune of less than 5 billion centimes or equal is exempt from paying this tax. But, anyone who exceeds this wealth ceiling will be subjected to the relevant taxes. 

The Ouyahia government first proposes imposing a 1% tax, and this rate of deduction will gradually increase with the high levels of wealth value until it winds up with the deduction of 3.5 percent at the last level.

 This new measure, confirmed by PM Ouyahia won’t concern according to him around 90 percent of Algerians, but its effective implementation will not be easy, for several considerations, the most important of which is the setting up of an exhaustive inventory of the wealth possessed by the rich people concerned by such a new measure.

The new tendency of the government to impose taxes on rich people, as it’s done in many other countries in the world, is justified by Algeria’s current dire financial woes and the authorities’ will to maintain social peace by notably keeping middle and low income earners exempted from any new burdensome taxes.

The executive’s agenda also included the proposed government’s decision on fuel price hikes; these increases, which are the third of their kind starting from next year came after the price hikes which were included in the financial laws for the last two years.

Therefore, the government is set to approve a price increase of more than 5 dinars on all types of gasoline, and more than two dinars on the price of diesel, as this is the highest price rise compared to the previous ones.