Taxation Represents 1/3 Of The State's Budget

Over 11.5 million Algerian workers contributed, through the tax on gross income, that deducted from their salaries directly 25% of the value of regular collection that is included in the state budget, while the taxes value that is paid by private institutions that is subject to the declaration system reached 16%, in the time when 580 billion DZD, or 58 thousand billion centimes, were deducted from workers’ wages for the benefit of the treasury.

Institutions contribute to the state budget with 334 billion DZD, equivalent to about 33 thousand billion centimes only, which exposes the difference between the contribution of poor workers in the state budget and the contribution of businessmen who use false declarations.

New figures from the Finance Ministry revealed that a quarter of the state budget is deducted from the workers’ salaries, according to the last fiscal year indicators more than 25% of the normal tax collection that is included in the budget was collected from the tax on the gross income that is applicable to salaries, which are taken from the source directly and which is estimated to 580 billion dinars DZD in 2015, compared to 532 billion DZD in 2014, while the same taxation that is imposed on other incomes reached 86.2 billion DZD, and the tax that is applicable to salary reached 25% of the regular actual collection that is included in the budget of 2015, which exceeded the value of 2,288 billion DZD.

Finance Ministry figures reveal on an unhealthy situation and imbalance in the Algerian contributions within the regular tax collection which, together with the oil taxation, forms the levy of the state’s annual budgets, and between the major institutions’ contributions, as 11.5 million Algerians pay the tax from their salaries to contribute with 25% of the state budget  and does not contribute to revenues of institutions that are subject to the declaration salary, by only more than 16% at a time when various taxes reached 803 billion DZD on deals.