Algerian government to overhaul customs duties on some costly imported products

The Algerian government is studying how best to give a new impetus to national production at all levels by scaling down the huge volume of imports notably through the revamping of customs duties on some expensive luxurious products imported from overseas.

The frenzied cycle of imports which reached this year over 60 billion dollars all products taken together, is taking unacceptable proportions according to the government which is now intent on drastically curbing this dependence on imported products and services through adequate remedial measures related to the  review of some customs taxes and duties on a set of targeted costly products.

Prime Minister Abdelmalek Sellal reiterated earlier this week his government’s resolve to curb the colossal volume of Algeria’s imports stressing that the most appropriate solution to forge ahead and boost national industrial production was to retrieve the national basic infrastructures.

The national strategic option is therefore to revitalize the process intended to diversify the economy starting with the non-hydrocarbons sector while deepening the reforms needed for the structural transformation of the economy.

trong social demands were contained thanks to subsidies to consumer prices, wage increases and social transfers, all of which hiked up government expenditure, but broad balances were maintained with a budget deficit equal to 3.3% of GDP, foreign debt amounting to 2.5% of GDP, a current-account surplus equal to 8.2% of GDP and foreign-exchange reserves of USD 190.7 billion at end-December 2012, or three years of imports.

Last Saturday, Prime Minister Abdelmalek Sellal to Djoudi enjoined Finance minister Karim Djoudi  to take all useful measures, with a view to bolstering exchange offences control and detection system.

The group in charge of combating in a “deeper manner the sources of illegal transfers of funds”  brings together the finance ministry, Bank of Algeria and the public banks, the finance minister affirmed.

The hike in Algeria’s imports, a source of concern to the government, continued in the first half of 2013 with an amount of $28.35 billion, up 17% in comparison with the same period of 2012, the Finance minister stressed.

In terms of offences to exchange rules, Karim Djoudi indicated that more than 1,000  reports had been established and conveyed to justice in 2013, equaling 17 billion Dinars, or about $220 million.