Half of the wage increase agreed with the Tunisian General Labour Union (UGTT) will be disbursed starting from late January in the shape of a tax credit, said Director-General for Studies and Tax Legislation at the Finance Ministry Sihem Boughdira Nemsia.
Income tax deductions will be lowered to the tune of 50% of the specific and general pay rise scheduled for this year, she Friday told a meeting on 20 17 Finance Law. Tax scale review is one in a string of measures designed, for the first time since 1990, in the framework of a tax system overhaul.
The move seeks to reduce the tax burden of low-income people and preserve the purchasing power of the middle-class by means of redistributing categories of taxable income and rates, Sihem Boughdira Nemsia indicated. It is also a way to secure a fair distribution of the tax burden among all social strata while exempting people earning less than 5,000 TD/year.
The official also shed light on a 15% tax cut geared towards urging firms to go public and outlined measures to encourage savings, stand up against tax evasion and achieve tax justice by means of widening bases for income taxes without increasing rates.
Finance Minister Lamia Zribi said her department eyes an action plan to harness additional resources so as to reduce recourse to indebtedness.
TAP
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