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October 14, 2024 | 11 months ago

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Exemptions for EPT assembly kits

To speed up the deployment of modern payment systems, still lagging far behind in Algeria, the Finance Bill for 2025 (PLF 2025) has introduced new tax and customs incentives to support the assembly of electronic payment terminals (TPE), as well as their accessibility for merchants and other economic agents.

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The said bill, approved very recently by the Council of Ministers and currently submitted to Parliament, provides for new measures to exempt customs duties and Value Added Tax (VAT) for kits intended for the assembly of VSEs as well as the parts and components constituting the kit when imported separately, a measure which must take effect from January 1 and until December 31, 2027. The objective of these «exemptions is to promote the assembly of electronic payment terminals, reduce associated costs, support the modernization of » payment infrastructures, and above all «reduce the cost of this equipment for end users, while maintaining an adequate level of protection for the local» industry. According to the text, these «terminals play an essential role in the modernization of payment systems and financial inclusion», but their deployment remains «limited by high costs of importing collections intended for small business assembly industries, leading to repercussions on the final price of this equipment which is currently borne by the » banks. According to data from the Electronic Payment Economic Interest Group (GIE electronic payment), the fleet of VSEs currently in operation on a national scale is estimated in total at 58,194 as of last August. From last January to August, flows of payment transactions by bank cards and mobile phones recorded respective growth rates of 16% and 12%, according to the governor of the Bank of Algeria, a use which remains «insufficient, hence, the numerous measures and actions that public authorities have to put in place to accelerate the development of electronic banking to not only modernize financial and banking services but also to reduce the preponderance of cash, the source of very strong fiduciary circulation outside banks.


October 14, 2024 | algeria-logo

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