Tunisia’s new agreement with the IMF is just two months away from becoming operational. The government, however, is far from being prepared to navigate what follows once it begins the precarious task of dismantling the subsidies system which covers basic goods and hydrocarbons. Rather than alleviating pressure on the country’s most vulnerable groups, it is likely to incite anger and indeed set off the social time bomb that it had hoped to disarm.
Tunisia-Finance Law 2022: Business as usual
There will be no fiscal revolution for Tunisia in 2022 as many might have once hoped. The country’s new finance law remains loyal to the same business model under which physical persons, including the most disenfranchised segments of the population, contribute a significantly larger portion to tax revenues than do businesses.
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