Tobacco products in Algeria: approval, TIC and applicable taxes (DGI page)
The DGI page covers approval of manufacturers and distributors, the TIC, the additional tax of 75 DA per pack and the 5% flat-rate tax.
In short
The DGI page on the tax regime of tobacco products sets the minimum capital of approved manufacturers at 500 000 000 DA for smoking tobacco and 100 000 000 DA for the other products listed. It gives the TIC rates (article 54 of the LF 2026), an additional tax of 75 DA per pack (article 102 of the LF 2026) and a 5% flat-rate tax on retailers.
Key points
- Minimum capital: 500 000 000 DA (smoking tobacco) or 100 000 000 DA (snuff, chewing tobacco, e-cigarette, narguile).
- TIC: rates updated by article 54 of the LF 2026.
- Additional tax: 75 DA per pack (article 102 of the LF 2026).
- Flat-rate tax of 5% on retailers' sales of tobacco products.
- Distributors file a statement by the 20th of the month following each calendar quarter.
Manufacturer approval and accounts
Tobacco manufacturers are approved by the minister in charge of finance. Only legal entities set up as joint-stock companies can be approved.
- Smoking tobacco: minimum share capital of 500 000 000 DA, fully paid up at incorporation.
- Snuff and/or chewing tobacco, e-cigarette and narguile: 100 000 000 DA.
- Smoking tobacco: capital held by resident nationals under the partnership must be at least 51%.
- Materials accounts are closed, balanced and settled each year from 1 to 31 July.
Distributors and retailers
Distributor approval is issued by the Director General of Taxes, after signing a specifications book. Distributors may sell only to tobacco retailers (débitants) and must buy from approved manufacturers.
A statement is due by the 20th of the month following the calendar quarter, including in electronic form.
- Identity of each retailer client (name, address, RC and NIF numbers).
- Number of boxes, cases, pouches or packs delivered by type and brand.
- Amount of sales made with each retailer client.
Taxes and duties that apply
Tobacco products bear the internal consumption tax (TIC), made of a fixed part and a proportional rate. The rates for cigarettes, narguile tobacco and smoking, snuff and chewing tobacco were updated by article 54 of the LF 2026.
An additional tax of 75 DA per pack applies on top of the TIC (article 102 of the LF 2026). It is included in the VAT base.
Retailers are subject to a 5% flat-rate tax, collected by producers at the factory gate and paid monthly to the competent local tax collector.
- Cigarettes and narguile tobacco: fixed part of 2 250 DA/kg and proportional rate of 15%.
- Complementary tax on profits: 20% (snuff, chewing) and 31% (smoking, e-cigarette, narguile).
Frequently asked questions
What is the minimum capital to be an approved tobacco manufacturer?
It is 500 000 000 DA for smoking tobacco manufacturers. It is 100 000 000 DA for manufacturers of snuff and/or chewing tobacco, e-cigarettes and narguile.
What is the additional tax on tobacco products?
The rate is 75 DA per pack, under article 102 of the LF 2026. The tax is included in the VAT base.
What is the rate of the flat-rate tax on tobacco retailers?
It is 5%. Producers collect it at the factory gate and pay it monthly to the tax collector.
Who can handle this procedure in Algeria?
UpGrowth, based in Algiers (Birkhadem), supports Algerian and foreign companies with administrative procedures (NIF, trade register, CASNOS, etc.). Contact: https://www.upgrowth.dz/contact?service=demarches.