Algeria launches tax amnesty to improve battered public finances
Algeria launched a tax amnesty on Monday to boost battered government finances as it grapples with a 50 percent fall in oil revenue en encourage “informal business” to join regular market.Analysts estimate authorities lose $4 billion annually by tax fraud. The tax amnesty, aimed at ordinary Algerians who has to justify any revenue they placed them in banks outside the legal market. They should pay income tax at 7 percent, will end in December 2016, the tax department said in a statement.
Algeria’s oil and gas revenues are expected to fall this year to $34 billion from the $68 billion earned in 2014, officials have said, as world oil prices have slumped.
Algerian imports are forecast at $57.3 billion for 2015, exceeding by far exports for the first time. Algeria has already frozen a series of development programmes, particularly in the public work sector.