General Directorate Of Taxation Resorts To IMF To Collect VAT Funds

General Directorate of Taxation decided to use this year, experts from the International Monetary Fund, for expertise and study of the difference in VAT after it stood at one fact and an incorrect situation that the effectiveness of this fee on the added domestic value is weak compared to its effectiveness on imports, while the courts will cover the collection of judicial fines immediately after sentencing at in a period that does not exceed six months.

It seems that the General Directorate of Taxation, which entered the various services on high alert, in order to adapt their accountability documents with the proportion of the new VAT, which noticed a review process by up 2% from the normal and the reduced fee, and found itself facing a new problem that lies in a wrong situation of the profitability and the proceeds from VAT, in an inverse equation the GDT stood at the reality of the weak profitability on VAT that is imposed on the domestic products and services, compared to the effectiveness on imports.

According to Echorouk sources from the finance and budget committee in parliament, the General Manager of Taxation, Abderrahman Raouia, did not find an answer and an explanation for this situation that is not logical, when coming off, on Wednesday, on the Commission, in the context of the discussion of the draft for settlement of the 2014 budget, and only the revealed on the decision of his services to hire IMF experts, in order to give an interpretation of the inverted logic and rectify the situation, as MPs besieged him through reservations and criticism of the performance of the GDT, at the time they criticized its failure in tax collection and this is clear through the huge debt of the tax figure in the report of the Audit Office.

Subject of the influence of 2017 Finance Act on the citizens’ purchasing power, was present at the “trial” of the tax manager, where the MPs said that it exhausted the simple citizens with tax cuts in order to collect 146 billion DZD, i.e 146 thousand billion, while investors benefit from all kinds of tax cuts without charge, while another deputy considered that the objective which is underlined by the Ministry of Finance to collect the management expenses exclusive from the regular collection is illogical.

Raouia returned to the MPs to draw on his files’ numbers, asserting that the tax debt reaches 2,500 billion dinars, while the remaining amount for the collection by the tax administration of judicial fines reaches more than seven thousand dollars, and represents in particular the accumulation of fines tax in addition to the debts of the dissolved public institutions, which were omitted under the last Finance Act/

MPs also spoke about the action that was taken to collect the backlogged judicial fines, that are related to compelling the Justice Department to direct collection of these fines in the six months that come immediately after the court’s decision.

If the fine is not collected by the Justice Ministry after the expiration of the term, the file will be transferred to the taxes administration that is responsible of management, and in the context the General Manager of Taxation sent an instruction to the provincial directorates notifying them that their performance in the field of the tax collection will be subject, from the beginning of this year, to the standard of recovering the uncollected debts and not on the collected amounts during the current year, and it comes with the debts of recent years, and not the ones that date back to 20 years ago.

Tax Director, acknowledged the difficulty of purging the accumulated debts, despite the focus on the collection of part of the tax debts without other measures, and justified this by a combination of factors that are relating to the composition of this administration and patterns of its work that need reforms and modernization.