In the midst of a major economic transition, Tunisia has prioritized improving its national tax and customs systems. USAID is supporting this effort through the Tunisia Tax and Customs Reform Pilot Activity (TCP), a three-year, $12 million program to facilitate tax administration and customs reform. Working in partnership with the Ministry of Finance, General Directorate of Legislative and Fiscal Studies, General Directorate of Taxes, General Directorate of Public Accounting and Recovery, and General Directorate of Customs, the program helps improve fiscal revenue and enhance the effectiveness, fairness, and transparency of tax and customs compliance.
The program works along three main lines:
- Supporting actions by the Tunisian Government to adopt a tax policy framework consistent with international best practices while strengthening the capacity of government agencies to carry out policy analysis and reform.
- Helping to modernize the government’s approach to tax administration and boost public confidence and trust in the system.
- Providing expert assistance to facilitate customs operations that are consistent with international best practices and that advance implementation of the WTO Trade Facilitation Agreement.
TCP is helping the Tunisian Ministry of Finance develop tax and customs policies and processes that are modern and efficient as well as transparent and accountable. For example, tools such as micro-simulation models play a critical role in demonstrating the utility of analyzing various tax policy reforms such as personal, corporate, and consumption tax policies—as one package rather as separate, individual actions. These improvements will go a long way toward helping the ministry advance changes aimed at improving the foundation for inclusive growth and private investment in Tunisia.