Tunisia: No New Taxes on Companies, Individuals in 2019
The Tunisian government will not impose new taxes on companies and citizens in the 2019 budget, a statement released by the government said.
According to the draft budget for 2019 released earlier this week, the government is committed to not burden economic institutions and citizens with new taxes in 2019 due to the “contributions they have previously made”.
The Tunisian government also decided to reduce taxes on companies operating in various sectors, including pharmaceuticals and information technology from 25 per cent in the 2018 budget to 13.5 per cent in next year’s budget.
The government said the reduction aims to boost the competitiveness of institutions active in the country and to preserve Tunisia’s position as “an attractive destination for investment”.
Tunisia’s 2019 budget would total some 40,662 billion Tunisian dinars ($18 billion), an estimated rise of 12 percent compared to the current year.
Faced with a rising trade deficit and falling foreign exchange reserves, Tunisia’s economy is in the midst of stagflation. The inflation rate in the country is still uncontrollable, reaching 7.8 percent. In July, Governor of the Central Bank predicted inflation would increase again to reach 8 percent.
The International Monetary Fund insisted last month on a range of demands, including reduction of Tunisian budget deficits and supporting the foreign exchange reserves.
Tunisia’s reform minister, Tawfiq al-Rajhi, has announced the government’s plans to cut the budget deficit next year from 4.9 percent in 2018 to 3.9 percent of GDP next year.