It’s Time to Abolish Tax Privileges
The Arab Watch Coalition has released a new study that highlights the critical economic and social challenges that Tunisia is currently facing. The country is dealing with substantial debt repayment obligations in 2023, coupled with a Finance Law that heavily relies on borrowing to fulfill its financial needs.
The study argues that seeking a new loan from the International Monetary Fund (IMF) won’t provide a solution to the country’s crises. Instead, it could potentially lock the country into a vicious cycle of perpetual debt and austerity, further entrenching its challenges.
The country ought to change its fiscal policy paradigm, and the study offers alternative strategies to navigate the present crisis and break away from the fiscal policies of the last 30 years.
By examining historical precedents, global trends, and lessons from past economic revolutions, the study outlines alternatives to the current fiscal policies, including measures aimed at restructuring tax contributions across different sectors and establishing equitable taxation, particularly targeting major corporations and high-income individuals.
The study is authored by Amine Bouzaïene, an independent researcher and consultant specializing in fiscal policies at the Ali Ben Ghedhahem Centre for Tax Justice.