Algerian parliamentarian Ahmed Al Sharifi revealed that the Algerian government's decision to resort to a wealth tax to finance the public treasury, which suffers from a large deficit, has not brought any positive results.
He added that the percentage that the wealth tax will add to the Algerian state treasury is very weak. The Algerian government wanted to give it a tax haven, a moral dimension of equity and ensuring social justice between rich and poor.
He criticized the budget bill passed by the Algerian government to end the current financial crisis witnessed in the country since the fall of oil prices, saying that the bill contained notable increase in the prices of basic commodities and suspension of employment in a large number of sectors.
He stressed that The “work plan” of Prime Minister Ahmed Ouyahia is expected to garner wide support at parliament where it will be up for a vote on Sunday, predicted observers of the political situation in the North African country. The premier’s document acknowledges that the Algeria people will face difficulties in 2018 due to the lack of financial resources.
The Algerian lawmaker announced that they will oppose the plan that was drafted during President Abdelaziz Bouteflika’s fourth term in office. Their influence will be however limited at parliament because they are in the minority.
He added that Ouyahia’s plan expresses government skepticism about the possibility of improving the country’s income from the selling of fuel during the next two years, revealed a copy of the document obtained by Asharq Al-Awsat. He added that this has prompted the PM to voice his intention to amend the loan law through printing more hard currency.
He stressed the possibility to obtain a loan from the Central Bank has not been ruled out. Economic and financial experts predicted that this step will create great inflation and spark a rise in the majority of products, which will ultimately keep the deficit as it is.