Algeria: Why is the Government has been unable to collect $ 110 billion in due taxes?

An accounting fact-finding report spanning the year 2014, brought to light the loss of tens of billions of dollars in due taxes to be retrieved by the State from numerous businessmen and senior traders who opted for tax evasion thus dealing a severe blow to the Public treasury.

As a result, the Government has failed to collect nearly $ 110 billion Dollars in taxes before the end of 2014, the report noted.

MP from the Front of Justice and Development, Mr. Hamani Mohamed Seghir, referred to this effect to the bill related to the fiscal budget settlement for the year 2014 now before Parliament, saying that there were huge excesses in the bulk of the operating budget and gross lapses in the performance spending of several ministries, adding that this led to the Government’s inability to collect nearly $ 110 billion in taxes, as the tax collection in 2014 amounted to nearly 1,264 billion dinars or about (11 billion dollars), which is equivalent to 11% of the due taxes, owing to manifold tax collection constraints.

The MP also noted that the failure to collect the funds did not include taxes, but also included a reduction of customs collection up to 8.52% two years ago. In terms of public spending, the MP scored more than 100 breaches of the law in the field of converting deductions from the Public Treasury. 

As an example, he cited the Premiership which he said, spent $ 90 million without providing any documentation, the Ministry Delegate in charge of the reform of public utilities as well, by spending for its part $ 10 million in the same way, without issuing the required balance-sheet regarding these free-wheeling disbursement of funds.