jeudi 05 dcembre 2019 19:41:40

The National People’s Assembly discusses amending the Law of Finance

The Minister of Finance, Mohamed Loukal, presented on Tuesday at the National People's Assembly (APN), the draft organic law amending and supplementing the Organic Law 18-15 on Finance Laws which proposes the separation of the tax regime of the hydrocarbon sector.

PUBLISHED : 12-11-2019 | 16:00
D.R

 

The Minister of Finance, Mohamed Loukal, presented on Tuesday at the National People's Assembly  (APN), the draft organic law amending and supplementing the Organic Law 18-15 on Finance Laws which proposes the separation of the tax regime of the hydrocarbon sector.

During a plenary session chaired by Slimane Chenine, President of the Assembly, in which the Minister of Energy, and the Minister of Relations with Parliament took part, Mr Loukal presented the content of the draft amendment which proposes the revision of Article 18 of the current law stipulating that "only finance laws contain provisions relating to the basis, rates and methods of recovery of taxes of all kinds as well as tax exemption".

However, in order to allow the new draft hydrocarbon law presented to the assembly for debate to include tax provisions, the Ministry of Energy proposed amending this article by allowing the hydrocarbon sector to have its own tax system and separating it from the finance laws.

To this end, a new paragraph has been added to Article 18 stipulating that the tax regime applicable to future activities related to the hydrocarbon sector could be introduced at "a special status" by "excluding the provisions relating to tax exemptions".

The Minister specified that future activities concerned will include exploration, exploitation and production, adding that this separation is "exceptional" for future hydrocarbon activities.

This amendment will strengthen Sonatrach's role as an economic operator in the country's development by introducing the necessary flexibility in its negotiations with its foreign partners to relaunch the prospecting and exploration activities that have been stagnating for years.

Negotiating Sonatrach's partners directly with the national company on the details of the taxation applied to partnership contracts in the fields of prospecting and exploration "will give them confidence and put an end to the bureaucracy in this field".   

Amended last year through the introduction of fundamental reforms, Organic Law 17-84 on Finance Laws, in its article 13, authorized the possibility of tax legislation through texts other than Finance Laws, in particular with regard to the hydrocarbon law. This possibility was cancelled by Article 18 of Law 18-15.

 

  • Published in :
YOUR OPINION

Souhaitez-vous poster un commentaire? Pour ce faire s'il vous plaît veuillez vous inscrire ou vous Identifier

Sign on
Presedant
Suivent
 

Donnez votre avis

Aidez nous à améliorer votre site en nous envoyant vos commentaires et suggestions