For promoting investment, encouraging domestic production

FINANCE BILL 2014 PRESENTED AT LOWER HOUSE

The Finance Bill 2014 presented Monday by Finance Minister Karim Djoudi before People’s National Assembly (lower house), introduced measures to encourage productive investment, promote domestic production and promote job creation especially in the South.

The 90 article of the Bill include provisions designed to curb imports, reduce the tax burden, and facilitate access to housing and encourage investment in the provinces of South.
Among the measures encouraging and guiding investment, the bill provides the removal of specific provisions on granting benefits to investment projects amounting to more than DZD 500 million and below DZD 1.5 billion.
The Finance Bill 2014 which expects an overall growth rate of 4.5% and 5.4% outside oil also contains a relief of approval procedures for foreign direct investment projects or in partnership with foreign capital by the suppression of their mandatory reviewing by the National Investment Council (CNI).
Encouraging foreign investments that contribute to the transfer of know-how or those producing goods with an integration rate exceeding 60% is also one of the measures in this bill.
The Finance Bill includes, among other things, the authorization granted to the Board of State Holdings (CPE) to set the subsidy rate and the period of delayed clearance of loans granted by banks and financial institutions to businesses and public institutions as part of their restructuring and development.
Other measures are also proposed such as the development of the banking network, the credit worthiness of SMEs in granting investment loans and renewal of exemptions on equity products.
The promotion and protection of domestic production is also one of the most important measures, (of the Finance Bill) proposes, the exemption of vehicles and trailers locally produced from tax on new vehicles.
It is also includes the obligation for car dealers and importers of vehicles to install an industrial activity or service or any other activities that have a direct and indirect relationship with the car industry within three (3) years. The investments made in this context can enjoy the benefits granted under the ANDI.

APS