(Ecofin Agency) - Tunisia plans to reduce its budget deficit to 4.9% (against 6% now) by 2018. To achieve this, it plans to rely on the tax reforms it currently implements.

“Next year’s budget will focus on major reforms which have been postponed for long, such as tax reforms and those in the public sector,” the Tunisian minister for economic reforms, Taoufik Rajhi (photo), told Reuters.

Tunisia plans to cap its 2018 budget at 36 billion dinars ($14,688,000,000) and will need in this framework about 10 billion dinars of funding. “External funding should  meet about 65% of the country’s needs,” said the official who also indicated that the reforms should result in GDP’s growth, from 2.5% this year to 3%.

Among reforms concerned there is a 1% rise in value-added tax (VAT), increasing retirement’s age which is currently 60 and a 1% tax on annual revenue to support social funds. These should be opposed by syndicates and the lawyers’ corporation has already declared it would go on strike if taxes are increased.

Aaron Akinocho