Tunisia's Tax Evasion Crisis

The informal economy and tax evasion pose a major challenge to Tunisia’s public finances. The informal economy averaged 39.08% of GDP between 1988 and 2023, while losses from tax evasion and fraud were estimated at around $8.5 billion in 2019. In its 2027 draft budget, the government plans to expand tax authorities’ access to information, curb cash transactions and promote electronic payments, as well as digitize the administration, simplify procedures and ease the burden on small-scale operators to encourage them to join the formal economy. The success of these measures will depend on bringing undeclared activities into the formal economy without putting greater pressure on salaried workers and compliant businesses, and on directing enforcement toward the main sources of tax evasion.

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