Algeria: Introduction of a pollution tax

Article 84 of the 2020 Finance Act introduces a new tax called the pollution tax. Insurance companies are responsible for collecting this royalty on all motor insurance and rolling machines policies which is levied at the contract underwriting.

Pollution tax rates are set at:

• 1500 DA (12.5 USD) for passenger vehicles
• 3000 DA (25 USD) for other vehicles and rolling machines

The amount of the tax does not include the value-added tax (VAT) base. Its product is distributed as follows:

• 70% for the benefit of the state
• 30% for the benefit of the Solidarity and Guarantee Fund for Local Communities