The Assembly of People’s Representatives (ARP) continued its examination of the 2024 Finance Bill, article by article, during a plenary session held on Thursday afternoon. They passed articles 16 to 38 of that bill.
Article 16 of the finance bill supports the compensation fund for agricultural damage caused by natural disasters, while Article 17 provides for the creation of a 20-million-dinar financing line for the National Employment Fund (FNE) to encourage the granting of loans to vulnerable groups to enable them to carry out projects in various fields.
Article 18 authorises the Ministry of Finance to waive the state’s debt to Société Ellouhoum (6.5 million dinars (MD)) in the form of a loan and customs debt, while Article 19 provides for a reduction in VAT on imports of tea and coffee by the Tunisian Trade Office.
During the plenary session, deputies also adopted Article 20 on support for the agriculture, fisheries and water sectors, Article 21 on the reduction of VAT on certain animal feeds and Articl
e 22 on provisions to preserve water resources.
They also adopted a series of articles aimed at supporting small and medium-sized enterprises (SMEs).
These include Article 23, which creates a 20 million dinar financing line for SMEs, Article 24, which supports the financing of financial restructuring operations for SMEs, and Article 25, which aims to strengthen the financial base of the Banque de Financement des Petites et Moyennes Entreprises (BFPME).
They also adopted Article 26, which aims to support the financing of socially responsible enterprises, and Article 27, which aims to encourage entrepreneurship and business creation.
It should be noted that this article provides for a tax exemption for newly created companies for four years from the date on which they start trading. However, certain companies and individuals are excluded from this measure.
Minister of Finance, Sihem Namsia, explained that the government preferred to exclude certain parties from this measure because of the cases of tax evas
ion that have been recorded in this area, in addition to practices that show that certain people seek to benefit from the exemption rather than actually investing.
MPs also adopted Article 28 on encouraging individuals to save by subscribing to government issues, Article 29 on encouraging stock market listings and boosting the financial market, and Article 30 on encouraging the financing of start-ups.
The plenary session of the ARP also saw the adoption of Article 31 relating to the deduction of income and profits reinvested in the share premium and Article 32 providing for the extension of the deadline for benefiting from tax advantages until December 31, 2025, instead of December 31, 2023. The MPs also adopted Article 33, which stipulates the postponement until January 1, 2023 of the application of the 19% VAT rate to sales of property built by property developers and intended for residential use. They also approved Article 34, which provides for customs duties on imports of solar panels to be increased t
o 30%. This article will come into force on January 1, 2025, as proposed by the Minister.
The MPs also adopted Article 35, stipulating the fixing of the tax imposed on the export of mining and quarrying products, and Article 36, which includes provisional measures aimed at reducing the cost of CTN’s acquisitions, as well as Article 37 relating to the reorganisation of the financial situation of Société Générale de Travaux.
They then adopted Article 38 on the introduction of alternative mechanisms for financing subsidy expenditure, which allows the State to recover part of the subsidy expenditure, as the Minister explained.
Source: Agence Tunis Afrique Presse