TUNIS: Tunisian President Kais Saied has suggested increasing taxes on wealthy individuals as an alternative to socially challenging reforms to address the country’s fiscal problems and secure an international financial rescue package.
Tunisia had reached a preliminary agreement with the International Monetary Fund (IMF) in October for a $1.9 billion loan, contingent on subsidy cuts, public sector wage bill reductions, and state-owned company reforms. The IMF has expressed concerns about Tunisia’s public wage bill, subsidies, low tax base, and support for unprofitable state-owned enterprises.
Tunisian Government and IMF Deal
While the IMF deal was based on proposals put forth by Tunisia’s government, President Saied has referred to the included fiscal reforms as “diktats.” Without his approval, the agreement and loan cannot be finalized. President Saied shared his concerns with French President Emmanuel Macron, describing the conditions of the IMF deal as risky.
In an effort to maintain social justice, he proposed an alternative scenario that involves imposing taxes on those who are financially well-off and do not require support.
President Saied also suggested convening a summit to address the issue of illegal migration across the Mediterranean. Italian Prime Minister Giorgia Meloni is scheduled to visit Tunisia next week, according to Tunisian state media.
