Baba Ammi: “Security Investigations And Property Seizure to Recover Billions In Tax Evasion”

date 2016/11/16 views 295 comments 0

icon-writer By: Imène Aouimer /*/ English Version: Med.B.

Finance Minister, Hadji Baba Ammi, said on Wednesday that the vulnerable and average sections of the Algerian population and the structural economic projects would not be affected by the rationalization of public spending as defined by the 2017 finance bill.

The minister, who responded to the concerns of the deputies at the plenary of the National People's Assembly (NPA), said that the bill obeyed to a policy of controlling public spending and preserving financial balances with on focus investment promotion and the maintaining of social assistance to the disadvantaged segments of the population.

Mr Baba Ammi said in this respect that the recent decision by the Bank of Algeria to re-launch the operation of refinancing banks would allow the availability of additional liquidities of the order of 350 billion dinars that will be made available to the banks in addition to the release of some 320 billion dinars following the decline in the banks’ reserves’ compulsory rate from 12 to 8%.

According to the minister, these two measures will allow the banks to better finance the economic projects which, he insisted, "are not concerned by the freezing decision insofar as they are financed by the banks themselves".

Regarding the Revenues’ Regulation Fund, Mr Baba Ammi pointed out that it was not a sovereign wealth fund for investment in external assets, but its role is to keep up fiscal stability and to ensure the payment of the country’s debt.

This Fund has played a key role as a fundamental tool to tackle financial shocks on the one hand and to finance public investment on the other, which has resulted in significant growth rates in comparison with neighboring countries and other oil exporters, the minister underscored.

*1,000 billion dinars from the Revenues’ Regulation Fund in 2016 and 2017 -

The Revenues’ Regulation Fund has helped to "reduce the burden on financial resources, particularly those destined to the banking sector, thus devoting these funds to the benefit of businesses and structural economic projects," the minister added.

From 2000 to 2015 the levies on this Fund reached 17.575 billion dinars, ie 90% of the surplus of the Fund, of which 14.567 billion dinars as contributions to the financing of the Treasury’s deficit (82% of the levies) and 2.600 billion dinars for repaying the principal of the public debt (15% of the levies) and 608 billion dinars for the advance payments by the Bank of Algeria.

*7,000 billion Dinars of unrecovered taxes -

Asked about methods of combating tax evasion and the informal market, the finance minister recalled that the volume of unrecovered taxes reached "7,000 billion dinars of which 5,000 billion DA are due to the two bankrupt banks and which are in the course of Liquidation ", namely Khalifa Bank and the BCIA.

With regard to the measures due to be taken by the tax authorities to recover part of these amounts stemming from tax evasion, he clarified that the relevant authorities would resort to "seizing assets and bank accounts, by initiating investigations in collaboration with the security services, against fraudsters, and would by the same token simplify tax measures in order to bring taxpayers and the Administration even closer", as he put it.

As for the informal trading activity, the Government, he stated, will strive to include it into a formal activity through the setting up of a framework enabling illegal traders to work in spaces equipped by local authorities, while allowing them to benefit, provisionally, of an exemption from the single flat-rate tax for a period of two years.

  • print