Economist Fares Mesdour To Echorouk: “We Have Simple Options To Be Fair With workers”

Economic Expert, Fares Mesdour, proposed several alternatives for the government to avoid the cancellation of the pre-retirement project, and contribute to the creation of a social stability, in light of inciting the Independent Syndicates to start a “hot” social entry on the impact of strikes and protests.

In this regard, Mesdour explains in detail his proposals in a phone conversation with Echorouk, that he proposed three alternatives that will contribute to the recovery of imports of the Pension Fund, which are fiscal alternatives and organisational substitutes of government and international labour alternatives.

On the point of fiscal alternatives, the economic expert added; “Companies pay different levy on annual profits, as there is a levy of 13%, 23% and 26%, and I propose that companies should pay only one discounted levy, and the rest can be supported by the retirement fund, through a tax or duty that is directed for the Retirement Fund in Algeria”.

“Second fiscal proposal is that the government can initiate a campaign to collect the value of tax evasion for companies, as a part of the collected amount will be added to the retirement fund. Tax evasion value in Algeria since 2000 and until today can reach $ 1,000 billion, which is at least 200 billion dinars every year. We can retrieve even 25% of them, and support the retirement funds. Third proposal regarding the levy, is the tax amnesty, for example, every tax evader can pay 50% of the levy to and can be exempted from the remaining 50%, and the money that is paid can be added to the retirement funds”.

“Government can adopt the international optional proposals, as the worker is given the right to buy the pre-retirement, to deduct from the wage and at his/her request, double of what is deducted from others’ wages, and after leaving the relative retirement he/she will obtain a financially comfortable retirement. The other proposal, is to calculate overtime for workers, for example, when he/she works in the weekends to take advantage of these hours during the early retirement”.