Initial Analysis of the 2024 Finance Bill Reveals Key Changes to Income Tax Brackets
A quick review of the 2024 Finance Bill project reveals several key points, including changes to the income tax brackets. The new brackets are as follows:
- 0 to 5,000 TND: 0%
- 5,000.01 TND to 10,000 TND: 15%
- 10,000.01 TND to 20,000 TND: 25%
- 20,000.01 TND to 30,000 TND: 30%
- 30,000.01 TND to 40,000 TND: 33%
- 40,000.01 TND to 50,000 TND: 36%
- Above 50,000 TND: 40%
As a result, individuals with an annual taxable income of 30,000 TND will see a 1.5% increase in their salaries, equivalent to 450 TND per year. On the other hand, those earning 60,000 TND will see their income tax increase by 550 TND compared to what they currently pay.
This measure seems logical and, in our opinion, is a step in the right direction. However, as those with middle and low incomes have a higher proportion of their income dedicated to expenses, this change will likely lead to higher inflation. It's a partial catch-up to the lost purchasing power, but it will have an impact on prices.
