Selected Issues Papers

Algeria: Strengthening the Revenue Mobilization Strategy

By Charles Vellutini

October 3, 2025

Download PDF More Formats on IMF eLibrary Order a Print Copy
More formats on IMF eLibrary Order a Print Copy

Preview Citation

Format: Chicago

Charles Vellutini. "Algeria: Strengthening the Revenue Mobilization Strategy", Selected Issues Papers 2025, 132 (2025), accessed October 4, 2025, https://doi.org/10.5089/9798229028424.018

Export Citation

  • ProCite
  • RefWorks
  • Reference Manager
  • BibTex
  • Zotero
  • EndNote

Summary

This Selected Issue Paper analyzes Algeria’s revenue mobilization challenges and outlines reform options to enhance non-hydrocarbon tax collection. With hydrocarbon revenues dominating public finances and exhibiting high volatility, Algeria’s non-hydrocarbon tax revenues remain low and stagnant. Using regression benchmarking, the study identifies a significant non-hydrocarbon tax gap of 2–4 percent of GDP, underscoring substantial untapped potential. Key constraints include weak value-added tax (VAT) and corporate income tax (CIT) performance, a narrow property tax base, and a large informal sector. The paper recommends tax reforms centered on base broadening, simplification of rates and exemptions, further strengthening of the tax administration, and the adoption of a Medium-Term Revenue Strategy (MTRS) to anchor efforts.

Subject: Corporate income tax, Excises, Fiscal policy, Medium term revenue strategy, Personal income tax, Property tax, Revenue administration, Revenue mobilization, Revenue performance assessment, Tax administration core functions, Tax gap, Taxes, Value-added tax

Keywords: Algeria, Corporate income tax, Domestic Revenue Mobilization, Excises, Income and capital gains taxes, Medium term revenue strategy, Personal income tax, Property tax, Revenue mobilization, Sectoral analysis, Tax administration core functions, Tax gap, Taxation, Value-added tax

Publication Details

You May Also Be Interested In...

State Capacity, Institutions and Growth: Taxing for Takeoff—Revisiting the Tax Tipping Point

October 3, 2025

Fiscal Rules and Fiscal Councils: Recent Trends and Revisions since the Pandemic

October 3, 2025

The Effects of Fiscal Consolidations on the Debt Distribution

October 3, 2025

Vietnam: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Vietnam

October 3, 2025