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Integration of the parallel economy in the Economic Recovery Bill: Issues and paradoxes…

02/10/2020
Source : La Presse de Tunisie
Categories: Economy/Forex

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The different readings of this bill are not unanimous on its ability to revive the economy, fight corruption and integrate the parallel economy. Some even consider it an attempt to “launder corruption”.

While the health situation continues to worsen in Tunisia, the authorities are currently facing a difficult economic period. Achieving the financial balances essential to the continuity of the functioning of the administration, looking into the complementary finance law and in particular preparing the finance law for the 2021 financial year which promises to be a tough test.

Except that a new challenge has just imposed itself on the Mechichi government, that of the "economic recovery law", which is currently being debated in view of certain measures relating to the integration of the parallel economy. In any case, this bill submitted to the ARP on July 24, 2020 relating to the recovery of the economy and aimed in particular at adopting new economic and financial measures to combat the impacts of the health crisis has been modified and adopted. yesterday, Thursday, by the parliamentary finance committee. Place now to fix a date to discuss and adopt in plenary this new law.

But the different readings of this bill are not unanimous on its ability to revive the economy, even if the findings and the diagnosis are shared. Some even consider it an attempt to “launder corruption”. Indeed, this is the case of the independent deputy Mongi Rahoui who strongly opposed the adoption of the said law in committee at the Assembly of People's Representatives.

The resigning member of the democratic bloc explains in this sense that this bill essentially aims to "legitimize and trivialize corruption, money laundering and smuggling", and "not to support the state budget and create new funding resources”.

Mongi Rahoui quotes in particular article 9 of this project which allows, according to his words, "fraudsters and smugglers" to be pardoned if they pay 10% of their fortune. "These measures can only be practices of laundering corruption and fiscal injustice", even affirming that certain deputies are exerting pressure to pass the bill in question. By the way, for Mongi Rahoui, "this project, even if it imposes on players in the informal sector a discharge tax on undeclared funds in return for an amnesty that would allow them to integrate the organized circuit, raises doubts and consecrates flexibility towards corruption and fraud”.

Except that the parliamentary finance committee, following consultation with the parties initiating the project, decided to review and modify these articles relating to the regularization of the situation of undeclared funds, while consulting the Financial Action Task Force (FATF ) and the services of the Central Bank to avoid a new blacklisting of Tunisia.

Tax relief in sight

The bill relating to the revitalization of the economy, the integration of the parallel economy and the fight against tax evasion had been submitted for examination to the parliamentary committee on finance, planning and development. development by the former government of Elyes Fakhfakh.

Designed mainly around several axes for a total of 31 articles, the bill essentially aims to integrate the informal sector and the parallel economy to create new sources of financing for State coffers heavily weakened by the health crisis and economic. It is also designed to provide new tax relief to encourage investment, fight against tax evasion, support and establish decashing mechanisms, while including measures for the benefit of Tunisians abroad. Moreover, the Minister of Economy, Finance and Investment Support, Ali Kooli, had underlined the importance of the bill proposed by the government since May 2020, while asking for the acceleration of its examination by the ARP, ruling out any possibility of withdrawing it. Same story with the chairman of the parliamentary finance, planning and development committee, Iyadh Elloumi, who ruled out the possibility of withdrawing this bill.

Tunisians dissatisfied

This bill, accused of being a source of normalization of corruption, comes in a context where the fight against this scourge is debated in Tunisia. Indeed, if this post-coronavirus economic recovery law aims in particular to include funds from unknown or illegal sources in formal economic circles, the fight against corruption and tax evasion must also accompany these new legal mechanisms once adopted.

Nevertheless, the fight against corruption emanates from a whole culture in Tunisia, especially since for this purpose, Tunisians do not have confidence in the public authorities. Both victim and responsible for corruption and smuggling in the country, the Tunisian thinks, according to a survey conducted by the firm One To One, that the government's performance is insufficient in the fight against corruption. 63% of our fellow citizens say that the level of corruption has increased "somewhat" or "a lot" during 2020 and that for 71% of them corruption is still a major problem in the country.

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