Algerian experts, economists and representatives of the Commerce and Industry chambers called for the abolition of the investment base 51/49 after 10 years since its adoption, through the Complementary Finance Law of 2009, criticizing the failure of this rule to prevent the transfer of Algerian capital abroad and hindering foreign investors who refused to submit to this restriction, and this criticism increased after the imprisonment of the former Prime Minister, Ahmed Ouyahia in Algiers Harrache prison.
According to a file that was prepared by the Algerian-Spanish Chamber of Commerce and Industry, which was revealed on Thursday, the investment base 51/49 has proved its failure in a large number of sectors and did not achieve any economic feasibility after 10 years, through the Complementary Finance Law for 2009, which makes it is necessary to revise this rule and to exclude its use only in the strategic sectors, as the Chamber made a number of proposals to modify the economic ground by identifying sectors that must be affected by the reforms.
A document of the proposals, which copy was received by Echorouk, the Algerian Chamber of Commerce and Industry calls for the liberalization of the production initiative and the facilitation of integration in “free trade”, in addition to improving the Algerian economic environment and achieving legal stability, as the laws of finance should not include every time radical changes in taxes on institutions, as these measures deter investors and frustrate the morale of institutions, and called for transparency, especially with regard to economic figures and statistics. The proposals also include the integration of the parallel economy into the parallel market.
The Chamber of Commerce confirmed the need to replace the tax on the professional activity, with another tax, which does not encourage parallel activity, and gives priority to national customers, in addition to diversifying the national economy and devoting sectors of growth and encouraging export and vocational training, and facilitating the entry of foreign institutions to the national market, especially in sectors that are attracting investment.
The proposals on asserted the need to accelerate the abolition of the investment base 51/49 and keep it only in the sovereign sectors, knowing that the statistics at the table of the government confirm that the rule 51/49 did not bring development during the past 10 years, especially in the service sector, in which the foreign trader will only be satisfied with 49% of the project.
This rule has been adopted since the second semester of 2009, through the Complementary Finance Law, which included a series of measures to regulate foreign investment, including the right of pre-emption and the documentary loan that is regulating imports.
These decisions have always been controversial among experts and economists and have caused the intervention of a number of foreign ambassadors and diplomats in Algeria to amend them.