Algeria’s government, aiming to ease the impact of the coronavirus lockdown on state and private firms, will freeze the payment of taxes, the finance ministry said on Monday. Algeria’s government, aiming to ease the impact of the coronavirus lockdown on state and private firms, will freeze the payment of taxes, according to the country’s finance ministry.

“Those measures aim to alleviate the repercussions of the health crisis and ensure the revival and preservation (of firms’) activities,” the finance ministry said in a statement.

Here Is What You Need To Know

• The move, which comes amid growing pressure on state finances due to a drop in energy earnings, follows a decision earlier this year to suspend the implementation of penalties on companies for delays in carrying out projects.
• The government has also approved a measure to defer or reschedule loan payments for firms suffering losses due to restrictions meant to limit the spread of the pandemic.
• OPEC member Algeria’s economy has been significantly hit because of a fall in global crude oil prices since the coronavirus outbreak which pushed down demand on international markets.
• Oil and gas account for 60% of the state budget and 93% of total export revenue as the authorities have failed for now to diversify the economy away from energy.
• Lockdowns aimed at reining in infections have further affected production in the North African nation of 45 million people.
• The economy contracted 3.9% in the first quarter of 2020 compared with a 1.3% growth in the same period last year, according to official data.
• But that situation has not prevented the government from taking steps to help firms with the aim of maintaining output and jobs mainly in the non-energy sector. 

Source: Reuters

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer