The Algerian government has imposed a monthly 0.5 percent tax on revenues of mobile operators in Algeria, reported Al-Borsa newspaper.
In its daily market report, Beltone Financial said the new tax implies around $4.6 million to be reduced from Djezzy’s annual revenues of $1.82 billion, given that it would be applied in the remaining six months of the year 2010, while it would decrease fiscal year 2011’s revenues of $1.83 billion by $9.2 million.
“We believe that impact of this new tax should be relatively minimal compared to the other significant challenges faced by Djezzy in the Algerian market, namely the introduction of a 5 percent sales tax on credit recharges in 2009 (charged on operators and not on subscribers), as well as lowering interconnection rates by 42 percent (which affected incoming ARPU, consequently), in addition to the imposition of reassessed taxes worth around $650 million (already paid in full by OT, pending the result of the company’s appeal in the Algerian Administrative Court),” Beltone said.
