阿尔及利亚：加强收入调动战略

Strengthening theRevenue MobilizationStrategy Charles Vellutini SIP/2025/132 IMF Selected Issues Papers are prepared by IMF staff asbackground documentation for periodic consultations withmember countries.It is based on the information available atthe time it was completed onAugust 26, 2025. This paper is alsopublished separately as IMF Country Report No25/271. 2025OCT IMF Selected Issues Paper Middle East and Central Asia Department Algeria: Strengthening the Revenue Mobilization StrategyPrepared by Charles Vellutini* Authorized for distribution by Charalambos TsangaridesOctober2025 IMF Selected Issues Papersare prepared by IMF staff as background documentation for periodicconsultations with member countries.It is based on the information available at the time it wascompleted onAugust 26, 2025. This paper is also published separately as IMF Country Report No25/271. ABSTRACT:This Selected Issue Paper analyzes Algeria’s revenue mobilization challenges and outlinesreform options to enhance non-hydrocarbon tax collection. With hydrocarbon revenues dominating publicfinances and exhibiting high volatility, Algeria’s non-hydrocarbon tax revenues remain low and stagnant. Usingregression 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) andcorporate income tax (CIT) performance, a narrow property tax base, and a large informal sector. The paperrecommends tax reforms centered on base broadening, simplification of rates and exemptions, furtherstrengthening of the tax administration, and the adoption of a Medium-Term Revenue Strategy (MTRS) toanchor efforts. RECOMMENDED CITATION:Vellutini, Charles, 2025, “Algeria: Strengthening the Revenue MobilizationStrategy”, Selected Issue Paper, International Monetary Fund. Algeria: Strengthening theRevenue Mobilization Strategy Prepared by Charles Vellutini1 STRENGTHENING THE REVENUE MOBILIZATIONSTRATEGY This paper analyzes Algeria’s revenue mobilization challenges and outlines reform options to enhancenon-hydrocarbon tax collection. With hydrocarbon revenues dominating public finances and exhibitinghigh volatility, Algeria’s non-hydrocarbon tax revenues remain low and stagnant. Using regressionbenchmarking, 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) andcorporate income tax (CIT) performance, a narrow property tax base, and a large informal sector. Thepaper 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. These reforms would strengthen revenue resilience and support sustainablefiscal consolidation. A.Introduction 1.Since 2020, the hydrocarbon sector has remained the dominant source of governmentrevenue in Algeria(Figure 1, upper-left panel). Oil and gas have generated both tax revenue(corporate income tax) and non-tax revenue (notably royalties and dividends from state-ownedenterprises), averaging 67 percent of total revenue over the period. However, a key fiscal challenge,as illustrated in the figure, lies in the high volatility of these revenues, which are directly tied tointernational commodity prices. 2.In contrast, non-hydrocarbon tax revenues have remained stagnant over the past twodecades consistently hovering around 10 percent of GDP(Figure 1, upper-left panel). In therecent period, these revenues have yet to rebound from the COVID-19 crisis: in 2019, they stood at12.3 percent of GDP, compared to just 10.6 percent in 2024. As shown inFigure 1, upper right panel,while this is slightly above the average for other fuel-exporting emerging market economies (EMEs),it remains significantly lower than in non-fuel EMEs. As shown in the lower-left panel, non-hydrocarbon revenues—particularly when expressed as a share of non-hydrocarbon GDP—aresignificantly more stable than hydrocarbon revenues. 3.Strengthening non-hydrocarbon revenue mobilization is essential.The broadermacroeconomic context highlights the urgent need to boost domestic non-hydrocarbon revenues.The non-hydrocarbon primary balance has steadily deteriorated (from -6.9 percent of NHGDP in2018 to -15.3 percent in 2024) while public spending needs continue to grow. This reinforces thecase for consolidating domestic tax revenues—particularly if Algeria is to limit its reliance onexternal borrowing. B.Estimating Algeria’s Tax Potential and the Scope for Additional TaxRevenues Algeria’s Tax Potential from the Non-Hydrocarbon Sector 4.We estimate Algeria’s tax potential using a regression benchmarking approach.Theapproach builds on Benitez et al (2023)1who provide a similar analysis for countries around theworld. The methodology analyzes differences in tax collection b