Financial Commission Examines Proposals for 2025 Budget Law
The Financial Commission, in collaboration with the National Council of Regions and Districts' Financial Commission, met on Monday, November 18, 2024, to discuss proposals for additions to the 2025 budget law. Several of these proposals were approved after discussions.
Reduction of VAT on Real Estate Intended for Housing
The commission adopted a proposal to reduce the Value-Added Tax (VAT) rate from 13% to 7% for the sale of real estate intended for housing, aiming to alleviate their cost. The deputies behind this initiative highlighted the impact of the increase in construction material prices and bank interest rates. However, the Ministry of Finance representatives indicated that the real problem lies in access to financing, while recommending an extension of the current measure for an additional year.
Relief on Marble and Silica Sand Taxes
Another approved proposal concerns the reduction of the tax on marble from 200 to 100 dinars and that on silica sand from 50 to 10 dinars. Deputies argued that the halt in exports, particularly of silica sand, due to the departure of foreign investors, has heavily impacted the sector. Meanwhile, the Ministry of Finance emphasized the importance of valorizing natural resources and preserving environmental balance, while recalling the international price increase of silica sand.
Regularization of Agricultural Equipment Tax Status
The commission also approved an amendment to Article 71 of the 2022 Finance Law to include heavy agricultural equipment, such as tractors and combine harvesters, in tax exemptions. Ministry representatives specified that these equipment have already benefited from tax advantages for five years, although they signaled certain irregularities requiring monitoring.
Opening of Foreign Currency Accounts for Tunisian Residents
Another approved proposal allows Tunisian residents to open foreign currency accounts with authorized intermediaries, provided that operations are conducted solely through banks. This measure could generate additional tax revenue for the state. However, the Ministry of Finance indicated that this mechanism falls under the Exchange Code rather than the Finance Law.
Cancellation of State Debt Penalties
The commission also debated a proposal to cancel penalties and sanctions resulting from the state's unpaid debts to public enterprises and other stakeholders between January 2022 and December 2025. This text was eventually replaced by a version proposed by the Ministry of Finance and approved by the commission.