Summary:

In late December 2022, following the release of the 2023 Finance Law including the national budget, the Tunisian subsidiary of Italian firm Minerali Industrali announced plans to close two Tunisian plants if the new taxes made its exports uncompetitive on the global market. The firm, which exports sand from Tunisia, noted that the 100 dinar per ton customs tax would force the site closures. The firm explained that the new taxes would make sand from French, German, and Portuguese producers more competitively priced on the market.

Outlook:  

The announcement from Minerali Industrali may be the first of many such proclamations as industries and firms look to apply to the 2023 Finance Law and calculate the potential losses. We are closely monitoring the economic and social impacts of the 2023 budget as it comes into effect, particularly as the second- and third-order effects are felt across the economy. The Ministry of Finance acknowledged that 2023 would be a difficult year for Tunisians due to the need for austerity measures and economic reforms. However, it remains to be seen to what extent the reforms might destabilize the social and security environment.

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