Tunis/Tunisia — The bill on rebooting the economy, integrating the parallel sector and combating tax evasion will not help revive the economy or overcome the current difficult situation, President of the Tunisian Confederation of Industry, Trade and Handicrafts (UTICA) Samir Majoul said on Thursday at the House of People's Representatives (HPR).
At a hearing session held by the HPR finance, planning and development committee on this bill, Majoul called for the revision of this bill through a participatory approach.
He estimated that the public enterprises operating as part of the "windfall economy," monopolise the markets, benefit from the State's guarantees despite their catastrophic yields, negatively impact the competitiveness and harm the citizens, voicing astonishment at the current situation of the phosphate sector (mining basin difficulties), of oil (El Kamour sit in) and of the port of Rades.
The UTICA President further pointed to the need to develop the tax system so as to boost investment, attract foreign currency, pay foreign debts by developing exports, attracting Tunisian businessmen living abroad and boosting tourism.
Besides, he considered that the Investment Law failed to be effective during the past years due to its complications, pointing to the need to change the economic model to make of Tunisia a destination for foreign investment so that to create about 500 thousand jobs and support growth.
In this vein, he insisted on the need to stabilise the political situation to restore the investors' confidence.
For their part, UTICA members participating in this hearing session said that this bill does not include concrete measures to boost investment and exports, reduce tax burden and mobilise the necessary funding for the enterprises.
The proposed bill is very complex and is open to several readings and interpretations, they indicated, proposing the amendment of several articles, including those on the deduction from the tax base of reinvested profits, the revaluation of corporate real estate and the tax burden.
The 45% tax burden imposed on companies is a real obstacle to investment, they considered, underlining the need to ease it.