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The government is working to diversify its revenue streams

Despite lower oil prices and, consequently, less favourable hydrocarbon taxation, the government is avoiding any new taxes that could reduce household purchasing power and any increase in the tax burden that could slow down the desired economic growth momentum, preferring instead to opt for more structural measures to broaden the tax base and gradually improve its ordinary revenues.

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The 2026 Finance Bill, currently being examined by Parliament, does not introduce any new taxes on households or businesses, despite growing pressure on the state budget. The authorities favour a strategy of strengthening ordinary resources through better tax collection, broadening the tax base, and combating fraud. The authorities are favouring a strategy that strengthens ordinary resources through better tax collection, broadening the tax base, and combating fraud. While revenues from oil taxation are expected to decline by 2028, overall budget revenues increase thanks to a rise in ordinary tax revenues, estimated at +6.6% per year. By the end of June 2025, 66% of the revenue forecast for the year had already been achieved, mainly thanks to a sharp increase in non-hydrocarbon revenues (+74.8%), particularly taxes (+21.4%) and state holdings. The government thus appears to be initiating a transition to a budget model that is less dependent on hydrocarbons, focusing on taxing the informal sector and digitizing procedures to improve collection efficiency.

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The government is working to diversify its revenue streams

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