Youssef Chahed, Prime Minister of Tunisia announced, “Tunisia’s Government will impose no new taxes on individuals and firms under the 2019 budget but will continue to reform a costly subsidies system.”
He pointed out that "The main goal is to boost growth and increase competitiveness of companies," stressing that the government would continue to overhaul the subsidies system, which is straining public finances.
Mr. Chahed pledged to proceed ahead with the reforms, despite the lack of public support. "Next year the Government will implement reforms that include subsidies and contributions to social welfare," he said.
Tunisia has struggled to fulfill donors’ demands to reform its economy and cut its budget deficit amid turmoil in 2011. The IMF has been pressing Tunisia to trim its budget deficit and increase fuel and electricity bills, whereas IMF and Tunisia have reached an initial agreement, on an expert level, on the upcoming reforms. The Washington-based fund is due to decide whether to pay out the next loan installment worth $250 million, part of a $2.8 billion scheme, at a board meeting this month.
Source (Al-Sharq Al-Awsat newspaper, Edited)
