Contractors ask for Fiscal Cuts to Save Housing Projects

General Association of Algerian contractors, said that it suggested the reduction of taxes for the benefit of the small and medium construction institutions, particularly recuding the fee on the professional activity to help improve the competition.

The chairman of the Association Mouloud Khaloufi, said on the sidelines of the meeting of the national office of the Association on this week end week, that the association calls for reducing the fee on the professional activity by 1 to 2 percent “to improve the status of institutions of construction, public works and irrigation, which suffer in their adaptation to national economic.”

Khalofi on the other hand, regrets the “hesitation” of banks in the financing of companies of construction, public works and irrigation, confirming that they meet the funding requests to “distillation,” adding; “financial institutions meet the demands of small and medium enterprises that need capital to start in the works and investment” .

According Khalofi the status of the sector ranked first in terms of job creation in Algeria, shows the presence of obstacles hat prevent it from playing an active role in mitigating the social pressures. “

Traders noted that although the “large amounts” that were granted by the State for the housing sector, the realization of construction programs are delayed due to the advertisment of tenders which were often ineffective, resulting in the increase of costs and extension of the achievement, as the association criticised the “lack of communication” between the administration and institutions, which prevented the institutions of good knowledge of the market.

The association stated in its demands that the administration works with the “crippling bureaucracy”, which is added to “the absence of bodies in charge of recruiting the development of the institution.” On the other hand Khaloufi expressed his “relief” for the actions that were taken by “GICA” company for cement to face the rising prices and scarcity of cement during the summer.

GICA cement company annouced last June that it will launch several important operations of cement production to cover the deficit in this product, which is estimated at more than 5.2 million tones.