Tunisia's draft budget for 2025 shows its intention to raise taxes on high-income employees and companies with revenues of more than 20 million dinars ($6.50 million), from 15 to 25 percent.
This comes at a time when domestic debt has nearly doubled, amid the government's continued inability to secure sufficient external financing to finance the budget.
In return, the government will cut taxes on low-income earners and may issue Islamic bonds for the first time as a way to help finance the budget.
The draft budget document for 2025 indicates that domestic borrowing will double to reach $ 7.08 billion, compared to $ 3.57 billion last year, while external borrowing is expected to decline to $ 1.98 billion in 2025, from $ 5.32 billion in 2024.
Tunisia's budget is expected to decline from 77 billion dinars ($25.20 billion) in 2024 to 63 billion dinars ($20.45 billion) in 2025.
