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“Will of the State to support productive investment”
The PLF 2026 under the magnifying glass
In his analysis of the 2026 Finance Bill (PLF), economist and financial analyst Mahfoud Kaoubi believes that the text “reflects the continuation of the State’s efforts in supporting investment with a view to diversifying the national economy, more particularly in the sectors of agriculture, industry and new technologies”.
Invited this morning on the program ”L’hôte du jour” on Channel III of Algerian Radio, Mr. Kaoubi explained that the bill is based above all on the principle of fiscal stability, a strategic choice aimed at “not imposing new taxes” in a context where economic recovery remains a priority. “On the contrary, the effort is made to encourage investment and the mobilization of capital so that it is reinvested,” he stressed.
The expert cites several concrete measures to support this orientation. Among them, the reduction in the rate of IRG (total income tax) on dividends from 15% to 10%, included in the bill, which aims to stimulate investments and energize the capital market. He also mentions the interest rate subsidies and tax exemptions already in force, presented as incentives to invest in productive sectors. However, Mahfoud Kaoubi recognizes that this proactive policy has a cost for public finances. Investment support measures and tax reductions inevitably result in pressure on tax collection, in a context marked by growing social needs.
“Social transfers and aid to the most vulnerable continue to represent a significant part of public spending,” he observes. The economist recalls that the 2026 PLF was developed in a relatively stable economic environment, with growth estimated at around 3%, a positive level maintained over the last four years. This dynamic demonstrates, according to him, a certain resilience of the national economy, despite the challenges linked to the international situation and the still unfinished diversification of the productive fabric. But all is not yet satisfactory. Mahfoud Kaoubi deplores that “the return on investment is not yet significant in terms of tax revenue”. The contribution of businesses, particularly through the corporate income tax (IBS), remains “insufficiently dynamic”, he regrets. In conclusion, the analyst believes that the PLF 2026 marks a continuity of public policies in favor of recovery and economic confidence, but he calls for increased mobilization of the productive sector to transform these incentives into real and sustainable growth.
Djamila Sai