Algeria, the second largest corn market in North Africa, exonerate a value-added tax on U.S. distiller’s dried grains with solubles (DDGS) and corn gluten feed (CGF) for one year.
The government of Algeria has lifted a value-added tax (VAT) on U.S. distiller’s dried grains with solubles (DDGS) and corn gluten feed (CGF) for 2018, “The U.S. Grains Council (USGC) has been demonstrating the clear advantages of using DDGS and CGF in feed rations through activities in Algeria,” said Ramy Hadj Taieb, USGC regional director for the Middle East and North Africa. “This success was made possible thanks to efforts deployed by the Council and our various partners in Algeria.” Algeria is the second largest corn market in North Africa, second only to Egypt. The poultry and dairy sectors are growing industries. For the last two years, the Algerian government has imposed regulations and made decisions to restrict imports in order to offset the persistent drop in international oil and gas prices. That included a 17 percent VAT on both U.S. DDGS and CGF. Combined with existing import duties of 30 percent, imports of these products were simply uncompetitive with other feed ingredients.
However, the Council and partners in country pushed for a reduction in tariffs and the Algerian government released a list of feed ingredients benefiting from an exoneration of a value-added tax until Dec. 31, 2018. The list notably includes corn, barley, DDGS and CGF.
“The difference of cumulated import and value-added tax tariffs has considerably narrowed, especially when compared to competing feed ingredients,” Taieb said. While the exemption from the value-added tax is a success, U.S. DDGS and CGF are still subject to import duties of 30 percent, compared to 5 percent for both corn and soybean meal.