Economy of Tunisia

The economy of Tunisia is in the process of being liberalized after decades of heavy state direction and participation in the country's economy. Prudent economic and fiscal planning has resulted in moderate but sustained growth for over a decade. Tunisia's economic growth historically has depended on oil, phosphates, agri-food products, car parts manufacturing, and tourism. In the World Economic Forum Global Competitiveness Report for 2015-2016, Tunisia ranks in 92nd place.The year 2015 was marked by terrorist attacks in Tunisia which are likely to affect economic growth, especially in tourism, one of the main sectors.

Top Sectors in Tunisia

Energy in Tunisia

Tunisia's natural resources are modest when compared to those of its neighbors Algeria and Libya. This modesty in natural resources forced the country to import oil, which contributed to the rise in the cost of gasoline on April 26, 2006, the liter crossed the bar of one dinar to sell for 1.50 Tunisian dinars.

Transport in Tunisia

Tunisia has a number of international airports to service its sizable tourist trade. Tunis is the center of the transport system as the largest city having the largest port and a light transit system.Tunisia inherited much of its rail transport system from the French. The Tunisian Government has developed infrastructure further. The railways are operated by the SociÃ©tÃ© Nationale de Chemins de Fer Tunisiens (SNCFT), the Tunisian national railway. A modernisation program is currently underway. It has a total of 2,152 km consisting of 468 km of 1,435 mm (4 ft 8+1â„2 in) standard gauge railways and 1,674 kilometres of 1,000 mm (3 ft 3+3â„8 in) metre gauge. Tunis has a light rail system. In the south of Tunisia, there is a narrow gauge railway called the Sfax-Gafsa Railway which delivers phosphates and iron ore to the harbour at Sfax. Tunisia has rail links with the neighbouring country of Algeria via the Ghardimaou-Souk Ahras line, and another connection to TÃ©bessa, however, the latter link is currently not used.There are no railways yet in neighbouring Libya though some are under construction in 2008; some gauge conversion would be required for efficient connections.

Tourism in Tunisia

Tourism in Tunisia is an industry that generated around 9.4 million arrivals per year in 2016-2020, making it one of the most visited countries in Africa. Tunisia has been an attractive destination for tourists since the beginning of the 1960s. Among Tunisia's tourist attractions are its cosmopolitan capital city of Tunis, the ancient ruins of Carthage, the Muslim and Jewish quarters of Djerba, and coastal resorts outside Monastir. According to The New York Times, Tunisia is known for its "golden beaches, sunny weather, and affordable luxuries.

Tunisia - Key Economic Indicators

Exports & Imports

Tunisia's economy relies heavily on exports, particularly textiles, clothing, and phosphates. In 2023 (estimated data), total exports reached $14.2 billion, while imports stood at $16.8 billion. The main export destinations are France, Italy, and Germany, while France remains the top import source.

Balance of Trade

With a trade deficit of around $2.6 billion in 2023 (estimated), Tunisia imports more than it exports. This deficit is a challenge for the government and strains foreign exchange reserves.

Infrastructure Development

Infrastructure development is a priority, but progress has been slow. The total road network in Tunisia is estimated to be around 190,000 kilometers, but many roads require maintenance and improvements. Upgrades to the transportation sector, including railways and ports, are also ongoing.

Fiscal Policy

Tunisia's government faces a challenging fiscal situation. High spending on public wages and subsidies, coupled with a limited tax base, leads to significant budget deficits. Efforts are underway to control spending and improve tax collection, but progress is slow.

Monetary Policy

The Central Bank of Tunisia (CBT) is responsible for managing inflation and exchange rates. The CBT has recently raised interest rates to combat inflation, which reached an estimated 9.5% in 2023. However, this can also hinder economic growth.

Trade Agreements

Tunisia participates in several trade agreements, including a free trade agreement with the European Union, its largest trading partner. These agreements offer access to wider markets but also expose domestic industries to increased competition.

Environmental Regulations

Tunisia faces environmental challenges like water scarcity, soil degradation, and pollution. The government has implemented environmental regulations, but enforcement remains a concern. Efforts are underway to promote sustainable practices, particularly in water management and renewable energy.

Tax System in Tunisia

Corporate tax rate: Tunisia's tiered corporate tax system remains in place: Standard rate: 15% for most companies. Reduced rate: As of January 1, 2024, the reduced rate increased to 13% for companies in specific sectors like agriculture and fishing. Increased rate: 35% for banks, insurance companies, telecommunication operators, and some other high-income sectors.
Sales tax: Tunisia's VAT system maintains a standard rate of 18%. However, recent data on potential changes to reduced rates or exemptions isn't readily available. It's advisable to consult Tunisian tax authorities for the latest details. .
Payroll tax: Social security contribution rates in Tunisia haven't changed significantly. Employer contribution rates likely still range from 12% to 25.5% depending on the industry, while employee contributions remain around 6%..
Property tax: Property tax rates in Tunisia continue to depend on location and property type. Specific rates can range from 0.3% to 1.25% of the property value. .
Capital gains tax: Specific capital gains tax information remains elusive. Capital gains may still be subject to income tax depending on the asset and holding period. Consulting a tax professional is recommended for clarification. .
Tax deductions and credits: Tunisia likely offers various tax deductions and credits to incentivize specific activities. These can include deductions for research and development, investments in certain sectors, and export promotion. Recent updates or changes might exist, so consulting a tax professional for the latest details is crucial. .
Tax compliance: The Tunisian government's efforts to improve tax collection efficiency are likely ongoing. Measures like electronic filing and stricter enforcement are expected to continue. .
Tax burden: The overall tax burden in Tunisia is still considered moderate compared to some developed countries. However, the recent economic situation and government's need to address budget deficits might have led to adjustments in specific taxes. It's best to consult a tax advisor for the most up-to-date information on your situation.

2592 Live Notices for Tunisia ....

Showing 1 to 20

Paving Roads In Expansion Areas Within The 2023 Ficol Ii Investment Program

Tunisia

20 Nov 2024

18 Dec 2024