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December 2, 2023 | 2 years ago

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Local authorities: tax on petroleum products to compensate for TAP

Following the abolition of the Tax on Professional Activity (TAP), new compensation measures are planned for 2024, as part of the Finance Bill for 2024 (PLF2024), as Finance Minister Laâziz Faid pointed out to MPs last Thursday during a plenary session.

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"The bill addresses the issue of financing local authorities to compensate for the shortfall in resources resulting from the proposed abolition of the TAP," said the Minister.


He cited the allocation of revenue from the tax on petroleum products (TPP) to local authorities. Tax revenues from the TAP, estimated at 153 billion dinars, will be "fully offset" by forecast revenues from the TPP, estimated at 186 billion dinars for the 2024 financial year, according to the explanations provided by the Minister.


This is the first phase, pending finalisation of a bill currently being drafted by the Ministries of Finance and the Interior. The aim is to define how the TPP is to be distributed so that all municipalities can benefit from its revenues, according to the same source.


To support this approach, other measures have been introduced as part of the PLF, in particular the creation of a local solidarity tax, applied to the transport of hydrocarbons by pipeline and to mining activities, the revenue from which, estimated at 6.7 billion dinars, will go entirely to local authorities.


The bill also provides for an increase from 30% to 50% in the share of the revenue from the tax disk due to the Caisse de solidarité et de garantie des collectivités locales (CSGCL), and the allocation of 50% of the revenue from the specific tax on gas flaring.


As a result, the estimated revenue from taxes and duties intended for local authorities for the 2024 financial year will be revised upwards, rising from 438 billion dinars in 2023 to 515 billion dinars in 2024. "This will make it possible to record a surplus of 77 billion dinars", according to the Minister, who also raised the issue of opening and closing special appropriation accounts (CAS).


December 3, 2023 | algeria-logo

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