1. Economic News 

 

The President of the Republic ordered during the last Council of Ministers the renewal of the maritime transport fleet through the acquisition of new ships, he enjoined in this context, the first person in charge of the sector to draw up an exhaustive report of the sector and to submit it to the next meeting of the Government. He also asked to prepare the implementing texts relating to the increase in wages, retirement pensions and unemployment benefits as well as the entry into force of the specifications governing the activities of car manufacturers and dealers. .

 

 

The Minister of Finance reported new measures in As part of the presentation of the 2023 finance bill, this concerns, among other things, the penalty imposed on investors to reinvest 30% of the amounts resulting from tax exemptions, namely those applied to company profits ( IBS) and the tax on professional activity (TAP) granted under the business support schemes.

 

The text also provides, he explained, the reduction of tax burdens, concerning the tax on vehicles for transporting company personnel and the exemption of fishing cooperatives and approved federations from the IBS.

 

In addition, the bill proposes to submit individuals with a turnover of less than 5 million Dinars to a single flat-rate tax (IFU) of 5% regardless of the nature of the activity.

 

Regarding the actions that could be deployed by the tax administration, with a view to capturing and identifying part of the underground economy and encouraging its migration to the formal sector, the Minister of Finance reported a proposal adapting a ceiling for the payment of tax deductions through banking channels for fees reaching 1 million Dinars. Such procedures, he indicated, also make it possible to reduce the risks that may result from the use of counterfeit banknotes and to absorb used banknotes. The PLF provides, in this context, for a review of the fines applied to offenses related to indirect tax payments
With regard to the withholding tax applicable on goods intended for resale in the state currently set at 2%, it will eventually be increased to 4%.
In the component relating to the importation of vehicles, the bill proposed the facilitation of the importation of tourist vehicles less than three years old, and this, by removing the condition to limit this importation fixed to only once every three year.

In the field of foreign trade, according to the text of the law, tax exemptions will be extended to import operations of hybrid and electric vehicles, and the authorization of the import and customs clearance of agricultural equipment. less than 5 years old.

 

 

ATunder tax incentives and incentive measures investment for the benefit of operators engaged in petro-gas activities, the draft text of the finance law has provided for exemptions relating to value added tax (VAT) and duties, taxes and fees due to services customs.

 

 

 

Algeria is moving towards the creation of a real industry, with integration rate of up to 40% during the first five years of the launch of industrial activity, particularly in the mechanical engineering and automotive industry sectors. In order to achieve this objective, it is reported the establishment of a new system including incentive measures including exemption from customs duties and value added tax (VAT) on components and materials raw materials imported or acquired locally by subcontractors and producers as part of their activities. Speaking on the sidelines of the organization of the international subcontracting fair which recorded the participation of more than 90 national and foreign companies, the Minister of Industry indicated that his sector aspires to increase the GDP from 6 to 15% through the creation of a base of subcontractors capable of guaranteeing the development of industrial sectors.

 

 

Driven by the performance of several sectors, the Minister of Finances indicated that the growth rate in Algeria should record an upward trend by 2025, thus providing for a rate which should be around 4.1% for the year 2023, at 4.4% for 2024 and 4.6% in 2025.

 

He also pointed out that the agriculture sector should experience a growth rate of 6.9% in 2023, 5.5% in 2024 and 5.7% in 2025, while that of Industry should record a rate of 8.5% in 2023, then 9.6% in 2024 and 9.3 in 2025. The Buildings and Public Works (BTP) sector, for its part, should register a growth rate of around 5.6% in 2023, 3.9 in 2024 and 4.5% in 2025.

 

 

 

 

1. Business Eco

 

• Signing of a natural gas supply contract between Sonatrach and the Slovenian company Geoplin. The contract concluded between the two entities will cover the delivery of 300,000 tonnes of NG to Slovenia through the Transmed – Enrico Mattei gas pipeline, linking Algeria to Italy for a period of three years, starting in 2023. This agreement will allow Sonatrach to position itself as a supplier of this energy on the world market.

 

 

• Following the signing last May of a contract between Sonatrach and the Chinese company Sinopec worth 490 million dollars for the development of the Zarzaitine deposit (Illizi) whose reserves are estimated at nearly 100 million barrels of oil, it is reported that a memorandum of understanding has been concluded between the two companies for the development and extension of their collaboration.

 

• The Chinese company "GENERTEC CNTIC" aspires for the next few years to carry out several investment projects in the energy field, this desire was reflected, following the signing last May of a contract with the Sonatrach group for the realization in Arzew of a production complex of Metyl Tert Ether (MTBE) an additive for the manufacture of unleaded gasoline. As a reminder, this contract was concluded for an amount of 500 million dollars. Its entry into production is scheduled for 2025 with a production capacity estimated at 200,000 tonnes/year.

In addition to this, you need to know more about it.

 

• Sonatrach has announced that in partnership with the Italian company Eni, the "Solar Lab" project has been launched in the Berkine region, this is a laboratory whose purpose is to carry out tests which will be produced on a set of photovoltaic panels in an environment characterized by a very high level of sunshine in order to collect data and analyze them for the development of renewable energies in Algeria.

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• After the Fiat group which signed an agreement with the Ministry of Industry for the construction of vehicles in Algeria, the French firm Renault is also preparing to assemble the kits which were in stock for months at the port of Arzew , the same is true for the two Asian manufacturers, namely Kia Motors and Hundai, which are actively preparing for the recovery.

 

 

In addition to this, you need to know more about it.

III. Nomination 

 

 

• Appointment of Mr. Ryad HADJAL, at the head of the Béjaïa Port Company (EPB), Mr. Ryad HADJAL has held numerous positions and several positions of responsibility, the last of which is that of Deputy General Manager of PFSO (Installation Safety Port).

 

• The Ministry of the Interior announced the appointment of Mr. Adil HAMIMID as Secretary General and that of Mr. Mohamed MEZIANE as Chief of Staff.

 

•  Appointment of Mr. Hamza BENHAMMOUDA to the post of Director General of the National Civil Aviation Agency.