2023-11-04 17:37:00
ALGIERS – The draft finance law for the year 2024 (PLF) provides for a battery of legislative measures intended in particular to preserve the purchasing power of the citizen through essentially various tax provisions, to support investments and national economy, as well as the simplification and digitalization of tax procedures.
The text, presented on Saturday by Finance Minister Laaziz Faid before the Finance and Budget Committee of the National People’s Assembly (APN), thus proposes a temporary exemption from VAT, at the production and wholesale and retail marketing stages, until December 31, 2024, broiler chicken, turkey, table eggs, fresh fruits and vegetables, produced locally and dried vegetables and rice, produced locally or imported.
It includes, as part of the measures aimed at consolidating purchasing power, the institution of a flat-rate solidarity allowance for social categories without income, in particular, heads of families, families, individuals, people aged over 60s and people with specific needs.
The PLF for next year also proposes the opening of a special allocation account No. 302-154 entitled “Alimony Fund”, through which the State will pay alimony awarded to beneficiaries and the Ministry of Justice will collect these amounts from the debtors.
In the area of housing, the text proposes a reduction of 10%, calculated on the basis of the remaining rent to be paid, granted to beneficiaries of AADL housing, having honored the payment of 25% of the price of housing and wishing to settle, in advance , the remainder of this price.
The PLF introduces payment by the Treasury, interest during the deferred period and the improvement of the interest rate of loans granted by public banks, up to 100%, as part of the realization of the additional tranche of 50,000 rental-purchase housing units, for the year 2024.
In addition, an extension until December 31, 2025, instead of July 31, 2023, of the deadline granted to occupants of public rental housing (social housing), wishing to acquire their housing, to submit their acquisition requests, has been proposed.
It is also proposed that the financing of public rental housing programs, roads and various primary networks be made available to the National Housing Bank (BNH), instead of the National Housing Fund (CNL). and secondary, as well as frontal aid and State contributions for access to housing.
The PLF also proposes to introduce the possibility given to the National Real Estate Promotion Company (ENPI) to market unsold public promotional housing (LPP) over the counter, subject to reimbursement of indirect aid from the State.
Removal of TAP
As for the component relating to support for investment, the text proposes the abolition of the tax on professional activity (VAT) in accordance with the instructions of the President of the Republic, Mr. Abdelmadjid Tebboune, and the possibility for projects of structuring investments, financed by a Treasury loan, to benefit from specific financing conditions.
It also provides for the reopening of the special allocation account entitled “Special Fund for the Promotion of Exports” (FSPE), in order to encourage non-hydrocarbon exports, in accordance with the guidelines of the President of the Republic.
Several tax advantages were also proposed in the PLF, with the aim of encouraging economic activities, such as the VAT exemption for reinsurance operations and Retakaful, the exemption from the single flat-rate tax. (IFU), turnover generated from raw milk collection and sale activities, and the extension of the application of the reduced VAT rate of 9%, currently applicable to waste aluminum, iron, wood, glass, cardboard and plastic, paper, rubber waste, end-of-life tires, used engine oil, gearbox and lubrication, edible oils and fats and lead-acid batteries.
Regarding measures in favor of entrepreneurship and startups, the PLF proposes a downward revision of the IFU tax rate from 5 to 0.5%, applicable to activities carried out under self-employed status. -entrepreneur.
The bill provides for a renewal for a period of five years, from January 1, 2024, of the exemption from import on corporate profits (IBS) and import on global income (IRG), proceeds and capital gains from the sale of Treasury bonds, securities and similar obligations, listed on a stock exchange or traded on an organized market, with a minimum maturity of five years, as well as registration fees, operations involving on transferable securities listed on a stock exchange or traded on an organized market.
As part of digitalization, the PLF introduced a series of measures concerning the customs declaration, in particular the obligation for the declarant to submit the declaration electronically, on the basis of digital documents and to carry out the electronic signature of the declaration, in accordance with the legislation in force.
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