Due to the raise of prices: Is it going to be the starting of new social crisis in Tunisia?

The new year has started with an increase in a number of consumer products in Tunisia, many of which are subject to consumption taxes, which will increase in some cases to 30%. Thus the Tunisian General Labour Union (UGTT) reminds the Tunisian government to abide by the agreement signed by the two parties, which is about the non-raising of basic materials prices.

The organization blamed the government for the repercussions of the non-social measures taken at the expense of wage earners, poor people and low-incomes. They called on them to compensate these groups, warning against the repercussions of the liberal policies, calling it for guaranteeing the sovereignty of the national decision to ensure the public interest of the country and meet the expectations of the general public and their social needs.

It also called for a number of other political and social events to peacefully confront the measures to increase the prices of many products, notably hydrocarbons, gas and mobile phone services as well as, working on to impose the suspension of the Finance Act of 2018. This suggest hot confrontations with “Yusuf Al shahids “ government if it approves a series of structural economic reforms, including a review of subsidies for a number of consumer goods and putting pressure to reduce the mass wages of public sector employees.

Experts pointed out that the consumption tax will rise to between 10 to 25% on most consumer products, and the taxes on the number of raw materials will be between 10 and 40%, which will reflect on most of the prices traded in the Tunisian markets.

Increases will not only be limited to fuel prices, but will include a range of other consumables as part of the government’s  measures to reduce the deficit recorded at the state budget level.