Tunisia plans to raise cosmetics importation tax to help cut budget deficit

Tunisia plans to raise cosmetics importation tax to help cut budget deficit

The Tunisian government has come up with ambitious plans to help cut the budget deficit, which could include raising custom taxes on foreign cosmetics importation.

Ridha Saidi, aid to Prime Minister Ridha Chalgoum, told Reuters, “We will raise some customs taxes on some products imported from abroad, such as cosmetics and some agricultural products to cut the trade deficit.”

The move comes as it was announced that 3000 public sector workers would be made voluntarily redundant next year, while the government is also set to raise VAT and other taxes in an attempt to cut the deficit.

The International Monetary Fund (IMF) and its partners are said to be applying pressure to speed up the process since the tourism sector was attacked by militants in 2015, according to Reuters.

Other measures include seeking up to $3 billion in foreign loans, which will include 1.4 billion dinars from the sale of bonds, with the new 2018 target aiming to reduce the deficit to 4.9 percent of gross domestic product, as opposed to 6 percent this year.

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