Algeria: Strengthening the Revenue Mobilization Strategy
Selected Issues Papers, October 3, 2025
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- Algeria: Strengthening the Revenue Mobilization Strategy
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Bibliographic details
- Authors: Charles Vellutini
- Published: October 3, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229028424.018
Summary
- Analyzes Algeria’s revenue mobilization challenges and outlines reform options to enhance non-hydrocarbon tax collection.
- Notes hydrocarbon revenues dominate public finances and exhibit high volatility, while non-hydrocarbon tax revenues remain low and stagnant.
- Uses regression benchmarking to identify a significant non-hydrocarbon tax gap of 2–4 percent of GDP, indicating substantial untapped potential.
Key findings and statistics
- Non-hydrocarbon tax gap: 2–4 percent of GDP.
- Non-hydrocarbon tax revenues are characterized as low and stagnant amid dominance and high volatility of hydrocarbon revenues.
Constraints identified
- Weak value-added tax (VAT) performance.
- Weak corporate income tax (CIT) performance.
- Narrow property tax base.
- Large informal sector.
Policy recommendations
- Base broadening measures to increase the tax base.
- Simplification of rates and exemptions.
- Further strengthening of the tax administration.
- Adoption of a Medium-Term Revenue Strategy (MTRS) to anchor revenue mobilization efforts.
Source: Charles Vellutini, Algeria: Strengthening the Revenue Mobilization Strategy, Selected Issues Papers, October 3, 2025.
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