Tunisia imposes new taxes to narrow budget deficit

Tunisian Prime Minister Mehdi Jomaa.

Tunisian Prime Minister Mehdi Jomaa.

Published Oct 2, 2014

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Tunisa - Tunisia has imposed new taxes, including a departure levy on foreign travelers, to narrow a deficit expected to reach 8 percent of GDP this year.

Three years after the 2011 revolution that ousted autocrat Zine El-Abidine Ben Ali, the north African country is struggling to match its political progress with economic revival.

On Wednesday, the government started to impose a $17 (R191) departure tax on non-resident foreigners, officials said.

The Finance Ministry said the move would raise $100 million between now and the end of next year.

As part of its further plans to raise state revenues, the government will over the next six months also deduct 10 percent of income from public and private sector employees' who earn more than 12,000 dinars (R75,107) - raising 320 million dinars.

Last month the government cut its forecast for economic growth for the third time this year, from 3 percent to between 2.3 and 2.5 percent.

Its budget deficit is set to reach 8 percent of gross domestic product this year, mostly because of wage costs for public workers and subsidies left over from Ben Ali's rule. - Reuters

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