COVID-19: Algerian Govt. Increases Workers Salaries, Cancels Income Tax For Low Earners

The Algerian Government has increased the minimum wage of workers.

COVID-19: Algerian Govt. Increases Workers Salaries, Cancels Income Tax For Low Earners
COVID-19: Algeria Increases Workers Salaries, Cancels Income Tax For Low Earners

The country also abolished income tax for those earning 30,000 dinars and below.

The new regulation was contained in a statement by the President Abdelmadjid Tebboune.

The President also disclosed that the country’s budget would be slashed by 50% as a result of financial crisis occasioned by the Coronavirus pandemic.

Despite this huge reduction, the government also agreed at a cabinet meeting to increase the minimum wage from 18,000 dinars ($140) per month to 20,000 dinars, while income tax will be abolished for those earning 30,000 dinars or less, the statement said.

A collapse in hydrocarbon prices this year — caused by plunging demand due to societal lockdowns designed to combat the spread of the virus and exacerbated by a brief price war between key players Russia and Saudi Arabia – is putting ever greater pressure on Algeria’s external accounts.

Even before this year’s crisis took hold, Algeria’s foreign exchange reserves had fallen to $62 billion at the end of 2019, from $180 billion in 2014.

The draft law factors in a plunge in oil receipts this year to $20.6 billion, compared to the $37.4 billion previously anticipated.

Tebboune on Friday ruled out approaching the IMF for a bailout, contending that “accumulating debt harms national sovereignty” when it is owed to foreign institutions.

He said he preferred to rely instead on domestic borrowing.

OduNews on Google News

Submit press release, news tips to us: tips@latestnaija.news | Follow us @ODUNewsNG 

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More