In Algeria, the most important sources of government revenue have been oil and gas royalties.
From the historical point of view the Algerian tax system seems to be inspired by its former coloniser- France.
[4] Actually as a whole system it looks to be the reproduction of the French base by implementing different modalities of taxation (imposition).
The very important, radical and innovative change happened in 2007 when the tax system was significantly reformed.
[2] The single fixed tax was established for the most numerous group of taxpayers at the level of 5% for production and sale and 12% for any other activities.
This reform covers people, network service providers, retailers, merchants, societies, enterprises, investors and all taxpayers with the turnover up to 30,000,000 DZD (US$263,400).
1% in production activities 2% in public works and hydraulic infrastructure For real estate tax we differentiate built and unbuilt property.
There is the progressive scale in function of the net taxable value which determines the amount levied by this tax.
Obligatory taxable operations: industrial/commercial/workmanship activity, operations of banks and insurance companies, activities of liberal professions, lease transactions, service provision, organizations of events, studies and research .... People subjects to VAT are all producers, wholesalers, importers and retailors.
This tax is levied on beers, cigars, tobacco, cigarettes, matches and lighters or also on some luxurious products such as salmon, coffee, caviar, fresh bananas kiwis or pineapples, ice cream, worn clothing, camping cars.