Finance Bill 2017 Approves 8 New Increases On Taxes, Fees To Revive Public Treasury

date 2016/10/19 views 270 comments 0

icon-writer Sofiane.A/English version: Dalila Henache

Finance Bill 2017 is more austere than the Finance Act 2016, because it approved new increases in various fees and taxes, to revive the public treasury, after the decline in oil revenues, experts say.

Finance Bill 2017 approved new increases in fuel prices and in the value-added tax (VAT) of the real estate transfers.

It raises the VAT from 17% to 19% for the average rate, and from 7% to 9% for the low rate.

It also raises VAT on real estate transfers "buy- rent-sale", and approved a rate on the tax of the general income (10% on the rent of individual homes, while the rate of 7% remains applicable to the income that derived from the rent of a collective housing, and the rate of 15% will be applied on incomes that derived from rent of shops or professional places, and the same measure is applied on renting buildings for institutions.

Same act proposes raising the fee for real estate licenses that are related to construction permits and certificates of conformity. In turn, the conformity certificates' prices will increase from 1.000 DZD - 12,000 DZD to 1,500 DZD - 18.000 DZD for residential buildings, and from 6,000 DZD - 20,000 DZD to 9,000 DZD -30.000 DZD for commercial and industrial buildings.

To enable the Treasury to collect an additional 20 billion DZD, the act approved an increase in the internal fee on consumption - consisting of a fixed part and a relative rate - for some luxury goods, and thus this fee is transmitted to the consistent part from 1.260 DZD per kilogram to 1.760 DZD / kg for tobacco blond and 2.470 DZD / kg for the cigar, while the rate remains relatively unchanged for this fee by 10% per pack of cigarettes.

Domestic consumption tax increased to 30% for other luxury goods like vehicles for all terrains and with large cylinder capacity that exceeds 2000 cm 3 and less than 3,000 cc.

Finance Bill 2013 also proposes in Article 28 to increase taxes on oil products, and thus the prices of selling with retail for regular gasoline will move to 32.47 DZD / liter, and for super gasoline to 35.49 DZD / liter, and with respect to gasoline without lead it will increase to 35.08 DZD / liter, and diesel to 20.23 DZD / liter.

Home appliances fees will also increase because the act provides for imposing a levy on energy efficiency, which will be applied on products that are imported or that were produced locally, and that run on electricity, gas or oil products, which will allow the public treasury to benefit from at least 10.7 billion DZD (9.2 billion DZD from the Energetic Efficiency Tax, and 1.5 DZD from the VAT).

In the case of losing a passport, whether it is normal or Biometric, obtaining a new passport requires, according to the finance bill, paying an increase on the stamp's nature worth 10.000 DZD, in the form of a tax stamp, and 3,000 DZD for the collective passport.

Complementary Finance Bill also proposes the payment of 1,000 DZD in order to renew the national bio-metric card in case of theft or damage.

A new tax will be imposed on the newly imported, or locally manufactured wheels, worth 10 DZD /wheel for the heavyweight vehicles, and 5 DZD /wheel for light vehicles.

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