Supporting tax administration and boosting tax revenues

Context

Tunisia’s public debt has risen sharply since the 2011 revolution. In addition to high government spending, the state loses significant tax revenue amounting to an estimated 20 per cent of gross domestic product every year. Structural shortcomings in administration and the regulatory framework complicate efforts to ensure a stable and socially just financial budget over the long term. At the same time, the lack of transparent communication reduces public acceptance of the tax system. The situation is further exacerbated by the failure to properly address money laundering and the financing of terrorism.

Objective

The financial authorities in Tunisia increase their revenue and can curb illicit financial flows.

Approach

By connecting governmental and non-governmental institutions, the project aims to make public financial systems more efficient and transparent. It raises awareness among the people responsible about the need to take effective action and to better identify and reduce illicit financial flows.

For this, it operates in three fields of activity:

• It improves organisation and administration within the Ministry of Finance so that taxes are collected in a more effective and just manner. Digitalisation helps make it easier to identify tax risks and to optimise administrative procedures.
• It promotes dialogue between authorities and taxpayers. Close cooperation with civil society fosters understanding of the tax system and improves attitudes towards paying taxes.
• It assists Tunisian institutions in curbing financial crime. The provision of training and advisory services helps to improve the implementation of international standards in the fight against money laundering and the financing of terrorism.

Last update: March 2025