Algeria is raising more taxes and cutting spending in its 2017 austerity budget which was approved on 22 November by parliament, in a bid to offset the fall in oil revenue from lower oil prices. The budget still needs the green light from the Algerian Senate.
Only some details about the increased revenue from higher tax rates or new taxes have emerged during the parliamentary debate of the budget, pending the official publication of the budget law. The budget will specifically raise the value added tax (VAT) rate next year from 17% to 19% (from 7% to 9% for “reduced rate” products), a measure which is expected to generate additional fiscal revenue of AD110bn ($1bn at the budget rate of $1=AD110). (CONTINUED - 764 WORDS)