The Official Journal recently published the Finance Law for 2025, introducing several new tax measures related to the resale of vehicles under three years old and the pricing of vehicle registration fees. These provisions aim to further regulate the automotive market while enhancing tax control.
One of the key measures in this law pertains to the resale of vehicles less than three years old. From now on, these cars can only be transferred after the payment of the initially granted tax benefit during the purchase. This measure applies to all vehicles that received tax reductions or exemptions from customs duties. If a vehicle is resold before the 36-month term, the seller must repay part of the tax advantage they benefited from.
Specifically, if the vehicle is sold after 24 months but before 36 months, a payment of 33% of the tax advantage must be made. This provision aims to prevent abuses and ensure that tax benefits are actually utilized for their intended purpose, namely, the possession of these vehicles for a sufficient period.
In contrast, if the vehicle is sold after 36 months, no additional payment will be required, as the tax benefit will then be fully amortized. These measures are expected to encourage greater stability in the market for recent vehicles while reducing speculation.
In addition to vehicle resale, the Finance Law 2025 also includes adjustments regarding vehicle registration fees. The rates for these fees, which must be paid annually by vehicle owners, have been reassessed, particularly for vehicles with more than 10 fiscal horsepower. For cars less than three years old, the registration fee is set at 25,000 DZD. This increase aims to account for the maintenance costs of the vehicle fleet and encourage vehicle upgrades.
Vehicles aged 3 to 6 years will have their registration fee set at 20,000 DZD, while those between 6 and 10 years will incur a fee of 15,000 DZD. These gradual increases aim to encourage motorists to renew their vehicle fleet while generating additional tax revenue for the state.
The reforms introduced by the Finance Law 2025 demonstrate the government's intention to regulate the automotive sector while consolidating tax revenues. By imposing stricter conditions for the resale of recent vehicles and adjusting registration fees, the state seeks to promote long-term vehicle ownership while facilitating a quicker renewal of the vehicle fleet.