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02 August 2018 Algeria imposes additional customs duties among other tax measures Algeria's Complementary Finance Bill (LFC) for 2018, adopted by a significant majority in both chambers of Parliament, has introduced an "Additional Provisional Safeguard Custom Duty." The new trade barrier provides for additional customs duty varying from 30% to 200%. In a separate effort to establish a trade barrier, Algeria initiated early 2018 measures designed to reduce the country's increasing trade deficit through an import ban on a list of 900 finished goods (executive Decree No. 18-02). The general understanding is that the new measure comes as a replacement to the imports ban. The objective is to gradually shift categories of products from the ban to the tariff list. The new tax shall be subject to the same collection, assessment, liquidation and litigation treatment as other customs duties. The National Investment Council (CNI) can no longer grant extended Value Added Tax exemptions on sales (maximum period of five years) to investments holding a "particular interest for the national economy." The incentive measure has been repealed by article 5 of the LFC. Article 7 of the LFC has raised the tax applicable to the activity of prepaid mobile refills wholesaling from 0.5% to 1.5%. The latter remains levied on each operation between the telecom operator and the distributor. Ernst & Young Tax & Legal Algérie, Head of Africa Desk – Maghreb and Francophone Africa and Head of Algeria Tax Practice, Alger Document ID: 2018-5931 |
