The Tunisian Observatory of the Economy (OTE) considers that the rejection of Article 50 of the 2026 Finance Bill, regarding the wealth tax, by the Finance and Budget Committee of the Assembly of the Representatives of the People (ARP) represents a step backward on the path toward tax justice.
In a bulletin published Monday, the observatory recalled that Article 50 of the 2026 Finance Bill aimed to broaden the scope of the wealth tax. It proposed expanding the tax base of the real estate wealth tax, initially adopted in the 2023 Finance Law.
Currently, this tax applies only to real estate assets with a real market value equal to or greater than 3 million dinars (MD), at a rate of 0.5%, and excludes primary residences and assets used for professional purposes.
The rejected text aimed to expand this measure to include real estate assets, commercial assets, and acquired movable property. It also introduced increased progressivity by creating two brackets based on asset value: 0.5% for assets valued between 3 MD and 5 MD and 1% for assets exceeding 5 MD.
Need for a balanced distribution of wealth
The rejection of this article comes as the Tunisian Observatory of the Economy and the Ali Ben Ghedhahem Center for Tax Justice had previously called for strengthening the progressivity of this tax to achieve effective revenue and balance wealth distribution.
Both organizations criticized the high concentration of wealth: the richest 10% of Tunisians hold 58% of total wealth, and 1% of them hold 24.1%, while 50% of citizens hold only 4.9%.
In light of this imbalance, the Observatory stresses that adopting a progressive wealth tax is essential for fair redistribution, reducing social disparities, and creating fiscal space to finance social sectors.
It notes, however, that the real progressivity of income tax in Tunisia remains insufficient. A 2024 World Bank report highlights that Tunisia has the largest gap between tax rates on labor income and those on capital income among developing countries.
This disparity contributes to deepening wealth concentration, enabling high-income groups to convert their resources into lightly taxed capital gains, thereby shifting the tax burden mainly onto middle-class wages.
The Observatory also argues that, contrary to the common belief that a wealth tax might discourage investment, such a tax could instead encourage the wealthiest individuals to redirect their assets toward more profitable and productive investments.
By targeting productive and unproductive assets, the tax incentivizes investment in high-yield assets rather than holding inactive or low-yield ones.
According to the OTE, given the persistent budget deficit, the lack of resources to finance key social sectors (health, education, transport), and the tax burden borne by lower-income categories through labor income taxes and indirect taxes, a broader wealth tax is necessary to expand the tax base and ensure contributions proportional to the real ability to pay among the wealthiest.
Despite the rejection of this article in committee, the OTE notes that members of Parliament still have the opportunity to strengthen the effectiveness and progressivity of this tax during the upcoming plenary sessions.
