Improving the implementation of environmental tax legislation
Project description
Title: Improved implementation of environmental tax legislation (ALFEN)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Algeria
Lead executing agency: Ministère Algérien de l‘Environnement et des Energies Renouvelables (MEER) / Algerian Ministry of the Environment and Renewable Energies
Overall term: 2020 to 2023
Context
The Algerian Government enshrined the polluter-pays principle in law in 2003. This means that those who cause environmental pollution also bear the costs of remedial measures under environmental law. By doing so, the Government laid the foundation for environmental tax legislation. The 16 taxes introduced concern polluting and hazardous industrial activities, industrial and household waste, petroleum products, air pollution and the import of tyres and plastics, for example.
However, the environmental tax system is not yet capable of calculating and collecting taxes efficiently on burdens originating from manufacturing enterprises. Therefore, the implementation of environmental tax legislation needs to be optimised and the collection rate increased.
Objective
Implementation of environmental tax legislation in Algeria has improved.
Approach
The project introduces an effective system for collecting five environmental taxes:
- tax on polluting and environmentally hazardous activities
- tax on industrial air pollution
- tax on industrial wastewater
- tax on the disposal of industrial waste
- tax on the disposal of waste from hospitals and clinics
The project has conducted a comprehensive analysis of the environmental tax system in Algeria and uses it to provide technical, organisational and strategic advice. To improve the legal framework, the project has developed technical proposals and supported the establishment of a committee comprising representatives of several ministries. It also provides training for actors responsible for calculating the tax bases and collecting environmental taxes on polluting companies.
In addition, the project provides technical assistance for the implementation of an environmental tax information system to serve as a digital network for all actors involved.
The project is developing a new approach to contracts to modernise and improve the environmental performance of companies. The project also organises awareness-raising activities, especially for companies, to share information on industrial pollution, existing integrated solutions and environmentally friendly technologies and processes.
The project is carried out in collaboration with the auditing and consulting firm Deloitte Tunisia.
Latest update: November 2022