Algeria drops wheat import tax

The Algerian government will suspend taxes on wheat imports by private operators on Sunday. Mill owners will be authorised to import durum wheat without paying taxes.

• The Algerian finance ministry will insert the tax exemption-related article in the 2011 Complementary Finance Act due to be passed by the People’s National Assembly (APN).
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• Algerian Commerce Minister Mustapha Benbada told Echorouk the suspension decision will come into force starting from Sunday.
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• He said the decision will fix the loss of balance in the national market in terms of semolina.
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• He added that the decision came following the explosion of durum wheat price in the world market. “That will make the National Office of Grains safe from export expenses.”
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• The decision also came following a meeting between the commerce ministry with a group of mill owners who want to import wheat. “That would enable them to have a wheat stock and to boost pasta industry. They can export wheat provided that they respect the limited prices.”
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• Benbada also said the government took this measure to face durum wheat import and oblige mill owners to exploit locally produced wheat. If operators import wheat, they will have to pay taxes on every operation estimated at 2,500 DZ for each quintal.
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• Earlier, the government imposed taxes on durum wheat in an attempt to push local industry to treat wheat as part of the national policy of grains agriculture development.