The Algerian government has proposed an increase in the additional tax on tobacco products from 75 to 85 Algerian Dinar per pack, box, or pouch, as part of the 2027 Finance Bill. This represents a 10 Algerian Dinar increase and is expected to generate 16.54 billion Algerian Dinar in additional revenue. The tax increase is part of a broader effort to regulate the consumption of tobacco products and raise revenue for the government.
The proposed tax increase is not the only change affecting consumer goods in the 2027 Finance Bill. The government is also planning to increase taxes on beer, wine, and spirits. The tax on beer would rise from 4,368 to 6,000 Algerian Dinar per hectoliter for beer with an alcohol content of 5 degrees or less, and from 5,560 to 7,000 Algerian Dinar per hectoliter for beer with a higher alcohol content.
The revenue generated from the tobacco tax would be allocated to various beneficiaries. Of the 85 Algerian Dinar tax, 19 Algerian Dinar would go to the Emergency and Medical Care Fund, 26 Algerian Dinar to the Anti-Cancer Fund, and 4 Algerian Dinar to the National Social Security Fund. The remaining 36 Algerian Dinar would go to the state budget. The additional 10 Algerian Dinar tax would go entirely to the state budget.
The government has justified the tax increases on health grounds, citing recommendations from the World Health Organization. The WHO recommends using taxes to discourage the consumption of harmful products. The government also argues that reducing beer consumption would alleviate the burden of alcohol-related health problems and road accidents.
The 2027 Finance Bill also proposes increasing the tax on wine and spirits. The tax on wine would rise from 50,000 to 60,000 Algerian Dinar per hectoliter, while the tax on whiskies and aniseed aperitifs would increase from 300,000 to 320,000 Algerian Dinar per hectoliter of pure alcohol. The tax on rum would rise from 150,000 to 160,000 Algerian Dinar per hectoliter.
The proposed tax increases are subject to approval by the Algerian parliament. The Finance Bill was adopted by the Council of Ministers on October 4, 2026, but it still needs to be debated and approved by the National People's Assembly and the Council of the Nation. If approved, the tax increases would come into effect on January 1, 2027.
The 2027 Finance Bill is part of a broader effort to manage the country's finances and address economic challenges. The bill also proposes changes to the automobile tax and wealth tax, among other measures. The government is also planning to increase salaries and implement measures to address food price inflation.
Key points
- The Algerian government plans to increase the tobacco tax to 85 Algerian Dinar per pack by 2027, aiming to raise 16.54 billion Algerian Dinar in revenue.
- The 2027 Finance Bill also proposes increasing taxes on beer, wine, and spirits, as part of a broader effort to regulate consumption and raise revenue.
- The proposed tax increases are subject to approval by the Algerian parliament and would come into effect on January 1, 2027, if approved.
