Tunisia: Report on Tax Justice Revealed

The Tunisian Association of Economists revealed in a recent report on "tax justice and the mobilization of state resources in Tunisia” that while the number of registered craftsmen and merchants in the Finance Ministry’s General Administration of Taxation is 414.000, their contribution to the fiscal resources of the state does not exceed 40 million dinars annually, which is equivalent to 0.2% of Tunisia’s the total fiscal revenue.

The report also showed that 219.000 of these people do not make any fiscal statement, whether when it comes to income tax or tax on added value and known consumption rate.

The report also estimated the value of these people’s tax evasion stands at 1400 million dinars annually, without counting those operating in the parallel and informal sectors.

The Tunisian Association of Economists, which is an academic and research institution, described the situation of tax redemption in the country as a cause for concern, adding that all merchants and craftsmen and 30% of self-employed people, most of whom are under the discretionary system, state at the end of each year since 2014, an annual income about their professional activities that does not exceed the income equal to extreme poverty.

Moreover, 76 % of companies do not pay any taxes to the state, stating the lack of profit or fiscal statements as a reason.

It is also important to note that 50% of the taxes on profits are paid by about 200 major companies, around 1900 million dinars annually, without considering petroleum companies.

However, in comparison, 3800 million dinars are borne by the private sector workers (one million and 600 thousand wages) and state employees, which means that the employee in Tunisia pays income taxes, twice as much as what the employer pays.

Such fact is not consistent with any economic standard, given that the employing institution is the one responsible for economic wealth creation and not its employees.

 

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