Algeria’s Ministry of Finance has stated that cuts in several ministries’ budgets are to occur and new taxes will increase the state budget with some new price increases for energy-related products.
The 2018 budget law will be setting a new ceiling, though it will not exceed 6800 billion dinars for equipment and operation, and these two items would experience budget cuts. The Ministry of Finance will be working to create a budget for the coming fiscal year over the summer.
There is a debate over whether or not to adjust the global income tax to tax based on income of individuals. The draft budget law of 2018 will likely allow for a tax increase as well as a revision of value-added tax rates.
Ordinary tax revenues are expected to be increased 11 percent between the time of 2018 and 2020.
Fuels will increase by 3 dinars for unleaded, super and gas oil. The government is seeking to balance out the $15.3 billion that was spent in subsidies in 2016.
