The price of tobacco in Algeria will undergo a significant increase in 2024. According to the draft budget, the tax for a pack will be increased by 35%. This increase should ensure an increase in tax revenue.
According to the draft finance law (PLF) 2024, presented on November 4 by the Algerian Minister of Finance, the additional tax on tobacco products will be increased from 37 to 50 dinars per pack (from 0.3 to 0.4 of dollars), writes TSA. The 35% increase should ensure an increase in tax revenue.
In addition, the text proposes to establish a corporate profit tax (IBS) for tobacco manufacturers at 16% or 20% depending on the integration rate.
Tax pressure
The tax burden in Algeria is between 50 and 56% depending on cigarette prices, and this is far from the average which is between 65 and 87% in several countries. For example, it is 70% in Tunisia, and 85% in France.
Currently a pack of Western brand cigarettes costs in Algeria on average 300-350 dinars (2-2.5 dollars).
