Algeria’s Ministry of Industry and Mines has found that certain tax advantages with the SKD-CKD injured the treasury and did not deliver benefits that it should have.
The decrease in the tariffs was 27 billion dinars in 2015, 40 billion dinars in 2016 and already 20 billion dinars in the first five months of 2017.
Imports of assembly and assembly kits have increased from $851 million in 2014 to $1.42 billion in 2015 and $2 billion in 2016. The year has already seen more than $1 billion.
However, the changes have not helped make the industrial export more competitive.
Additionally, car exports have increased to more than $815 million in the first five months of this year, whereas last year they were in the $300 million price range.
“The prices of the vehicles that came out of the factory were relatively high despite the tax advantages granted,” the Minister of Industry and Mines said. “We will encourage the transformation sector through concrete actions directed towards those who want to invest this activity and many more. There is no longer any question of continuing to work in an unregulated and dysfunctional environment.”
