Algeria to reduce income tax amid soaring food prices

People buy vegetables and fruits in a market in Algiers, Algeria, - Reuters file pic

ALGIERS: Algerian President Abdelmadjid Tebboune on Sunday ordered his government to reduce tax on overall income amid soaring food prices in the drought-hit North African country, the presidency said.

Avoiding social unrest has been a priority for authorities in Algeria where the middle class has been hit by soaring prices for some food products.

The government has blamed speculation for the upward trend of prices, including vegetables, fruits and meat, prompting it to tighten control at markets.

Tebboune "stressed the need to take all measures to preserve the purchasing power," the presidency said in a statement after a cabinet meeting.

"We need tight coordination between the ministries of agriculture and trade with the aim of maximum control over agricultural products and legumes."-

Algeria has also closed its airspace to French military planes, France's military said on Sunday, escalating the biggest row between the countries in years.

A spokesperson for the French Armed Forces said Algeria had closed its airspace to two flights, but that it would have "no major consequences" for operations in the Sahel region, south of Algeria.

Algeria's government and military were not immediately available for comment on the closure of airspace.

On Saturday, Algeria recalled its ambassador to Paris citing comments attributed to French President Emmanuel Macron, who was quoted in Le Monde as saying Algeria's "politico-military system" had rewritten the history of its colonisation by France based on "a hatred of France".

The Algerian government did not specify which Macron comment had prompted the recall of its ambassador, but it accused him of interfering in Algerian internal affairs.

Macron was also quoted questioning whether there had been an Algerian nation before French colonial rule. Algeria won its independence from France in 1962 after a bloody military struggle.

A source in the Algerian government said the comment about Algeria's existence as a nation had caused particular anger.

Algeria's ruling elite since independence has been largely drawn from veterans of its war of liberation from France.

"We understand Macron is on campaign and that he wants to get far-right support by all means, such as insulting Algeria's history... This is unacceptable to us," a former Algerian minister said. Frances holds a presidential election next April.

The row comes on top of strains last week when France said it would slash the number of visas available to citizens of Maghreb countries - drawing a formal protest from Algeria.

France has about 5,000 troops in the Sahel region, south of Algeria, fighting alongside regional militaries against Islamist militant groups mainly in Mali and Niger.- Reuters