Al­ge­ria plans to in­tro­duce wealth tax

Swazi Observer - - NEWS -

AL­GIERS – Al­ge­ria will im­ple­ment a wealth tax for the first time next year as part of mea­sures aimed at se­cur­ing new sources of fi­nance after a sharp fall in en­ergy earn­ings, Prime Min­is­ter Ahmed Ouyahia said on Wed­nes­day.

State fi­nances of the OPEC mem­ber North African na­tion have been sig­nif­i­cantly hit after a more than 50 per cent drop in oil and gas rev­enue.

Oil and gas ac­count for 60 per cent of the state bud­get and 95 per cent of to­tal ex­ports.

That has forced the gov­ern­ment to con­sider long-de­layed re­forms, in­clud­ing turn­ing to Is­lamic fi­nan­cial ser­vices and de­vel­op­ing the coun­try's stock mar­ket, which now has a low level of liq­uid­ity.

Au­thor­i­ties have also started re­duc­ing pub­lic spend­ing and have set im­port re­stric­tions in a bid to cut the value of goods shipped from abroad.

Ouyahia said the im­ple­men­ta­tion of the wealth tax from early 2018 would af­fect about 10 per cent of the coun­try's 41 mil­lion peo­ple.

"This tax will not con­cern 90 per cent of Al­ge­ri­ans," he told Par­lia­ment.

PLAN­NING: Al­ge­rian Prime Min­is­ter Ahmed Ouyahia.

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