PHOTO
(Adds minister quote, context)
TUNIS, Oct 4 (Reuters) - Tunisia plans a 25 percent rise in vehicle tax and increases in value-added tax and electricity prices to boost state revenues, the finance minister told local radio on Tuesday.
Prime Minister Youssef Chahed has announced a broad package of reforms meant to help the North African country spur growth after its tourism industry was hit hard by Islamist militant attacks and protests disrupted its state-run phosphate business.
But increased taxes and other austerity measures are sensitive in Tunisia where many people say their major concerns are the lack of jobs and the cost of living in the years since the 2011 uprising ousted autocrat Zine El-Abidine Ben Ali.
"There will be a 25 percent increase in traffic tax to help the state budget," Finance Minister Lamia Zribi told local radio, without giving further details. "We will increase value added tax and also there will be an increase in electricity prices in 2017."
Since the 2011 revolt and transition to democracy, Western governments often praise Tunisia as a model of success for the region. But successive governments have failed to create jobs or better control the public deficit as demanded by their international lenders.
Austerity measures like a vehicle tax proposed in 2014 or lack of jobs have in the past brought the kind of protests among young Tunisians that helped topple Ben Ali. Riots over jobs erupted in the south at the start of this year.
Earlier this year, the IMF approved a $2.9 billion four-year loan for Tunisia, one of a series of foreign credits and loans from partners hoping to support the transition. The IMF has urged Tunisia to accelerate reforms.
(Reporting by Tarek Amara; Writing by Patrick Markey; Editing by Janet Lawrence) ((pat.markey@thomsonreuters.com; +213-661-692993; Reuters Messaging: pat.markey.thomsonreuters.com@reuters.net))
TUNIS, Oct 4 (Reuters) - Tunisia plans a 25 percent rise in vehicle tax and increases in value-added tax and electricity prices to boost state revenues, the finance minister told local radio on Tuesday.
Prime Minister Youssef Chahed has announced a broad package of reforms meant to help the North African country spur growth after its tourism industry was hit hard by Islamist militant attacks and protests disrupted its state-run phosphate business.
But increased taxes and other austerity measures are sensitive in Tunisia where many people say their major concerns are the lack of jobs and the cost of living in the years since the 2011 uprising ousted autocrat Zine El-Abidine Ben Ali.
"There will be a 25 percent increase in traffic tax to help the state budget," Finance Minister Lamia Zribi told local radio, without giving further details. "We will increase value added tax and also there will be an increase in electricity prices in 2017."
Since the 2011 revolt and transition to democracy, Western governments often praise Tunisia as a model of success for the region. But successive governments have failed to create jobs or better control the public deficit as demanded by their international lenders.
Austerity measures like a vehicle tax proposed in 2014 or lack of jobs have in the past brought the kind of protests among young Tunisians that helped topple Ben Ali. Riots over jobs erupted in the south at the start of this year.
Earlier this year, the IMF approved a $2.9 billion four-year loan for Tunisia, one of a series of foreign credits and loans from partners hoping to support the transition. The IMF has urged Tunisia to accelerate reforms.
(Reporting by Tarek Amara; Writing by Patrick Markey; Editing by Janet Lawrence) ((pat.markey@thomsonreuters.com; +213-661-692993; Reuters Messaging: pat.markey.thomsonreuters.com@reuters.net))
