Taxation On Importing Used Cars Less Than 3 Years Old To Reach 52% Of The Total Value

Taxation on the used cars less than 3 years old will reach the limits of 52% of the total value of the vehicle between the rights and fees on the added-value VAT, an official source from the customs services told Echorouk.

“This procedure will also include importing cars with the war veterans’ licensing”.

“If the government will apply the draft law on importing used cars less than three years ago, as it was announced by the Trade Minister, the procedure would include providing a bill of buying the cars to the customs services and a certificate to prove that it is used for the first time, and is then the car will be subject to taxation by 52% of its total value as provided by the bill.”

In the subject, an activist in association and economy in Marseilles, Youcef Bouaboune, told Echorouk in a phone interview that the action that was announced by the Trade Ministry will revive the Algerian community economically and even in terms of manpower, and will also enable to curb the bleeding of hard currency that lasted for many years and caused large losses to the treasury and immigrants as well.

“State treasury will be maintain the hard currency and diminish its transfer to abroad, and it will collect taxes on these cars, as the maritime traffic of ships for transporting passengers will recover throughout the seasons, with a very high rate of filling, and the company would resort to hire new employees”.

“Immigrants would benefit at least from 5.000 new jobs in this framework, such as transport, insurance, mechanics and owners of warehouses and others. Citizens can buying one car every three years and also with the war veterans license”.

“A car in France with a beginning of the functioning in 2014, for example, and for an individual with average income, has the price that ranges between 3000 to 5000 Euros, which means that a car with 4000 Euros and customs fees with 2,000 Euros, will be acquired by 6000 Euros, (The official price with what is traded on the black market for the currency difference), and above this, the Algerian citizen will buy a car with the best quality and strict European standards”.

In view of this example, the car of 2014 of the French Renault “Clio 4”, for example, can be purchased by about 4000 euros, in addition to the customs rights, the price will reach the equivalent of 109 million centimes, calculating the currency at the black market, and 72 million counting the foreign currency at the official exchange rate.

Cars advertisement websites show that the minimum price of a car “Renault Clio 4”, for example, which beginning of the functioning is in 2014, is at least 150 million centimes, with a gasoline engine, and the up to 200 million centimes for the diesel engine.