Tunisian President Kais Saied recommended tax rises on the wealthiest on Saturday as an alternative to socially divisive policies in order to secure an international financial rescue package.
The Tunisian government and the International Monetary Fund (IMF) signed a preliminary agreement in October for a $1.9 billion loan in return for cuts to subsidies and the public sector pay bill, as well as reform of state-owned enterprises.
Credit rating agencies have warned that Tunisia may default on the national debt if the loan is not made, which is also expected to free up more bilateral financing.
The IMF has repeatedly voiced concern about Tunisia’s public wage bill, subsidies, low tax base, and support for underperforming state-owned enterprises, and has encouraged the nation to put its finances on a more sustainable path.
Saied has referred to the budgetary modifications contained in the October deal with the IMF as “diktats,” despite the fact that these measures were based on Tunisian government ideas. The transaction and funding will not be completed without his signature.
During a meeting with French President Emmanuel Macron, Saied compared the IMF deal provisions to “lighting a match next to a high explosive.”
His office quoted him as saying, “Another scenario could be based on putting taxes on those who do not need support” in order to maintain social equity.
Saied also proposed hosting a meeting to address the issue of irregular migration across the Mediterranean. Tunisian state media reported on Friday that Italian Prime Minister Giorgia Meloni would visit the nation the following week
