Based on a study conducted by the World Bank, Lotfi Ayadi, consultant at the bank said the subsidy levels on both sides of borders and differences in tax burden largely explain the extent of smuggling in Tunisia. He called, in an interview with Africanmanager, on the government in consultation with the civil society to implement the necessary solutions.
Interview:
What are the main results of the study?
After this quantitative survey conducted by experts appointed by the World Bank, tax losses are estimated for the Tunisian government because of the duo “parallel – smuggling trade” at 1.2 billion Tunisian dinars, including 500 million dinars under customs duties.
Regarding the value of parallel trade and smuggling at the Tunisian land borders, it exceeded 1.8 billion Tunisian dinars. This figure represents half of informal trade with Libya and exceeds that with Algeria.
We also note that the study has revealed major differences in prices between Tunisia and its two neighbors with significant gains registered among those who engage in such activities
What are the main smuggled products?
Fuel is the main product of illicitly smuggled from neighboring Algeria. Figures put at it at 800 million dinars. There are also appliances, including air conditioners, televisions and other electronic products.
For products entering Libya from illegally, they came almost entirely through the border area of Ras Jedir, unlike Algerian products where smugglers follow unconventional routes to avoid customs checkpoints. These products also include bananas, corn oil, fuels and other products with a high tax burden.
These goods are resold at a value close to 600 million TND in Tunisia.
Worth noting that about 3,000 vans cross the border on a daily basis.
How to explain the proliferation of cancer metastasis that is gaining ground as indicated by Wided Bouchamaoui?
This is mainly explained by the different levels of subsidy on both sides of borders and by the differences in tax burden
With the development of this study, what are the solutions proposed to control the situation?
In the study, three questions were raised: how to treat the imbalance in the tax burden? How to improve thereafter the control system, knowing that there is a loss of control of the customs authority on this flow after the revolution following the attacks at the border crossing of Ras Jedir? And the most important question: what could be done for the people living in border areas?
Then?
I think the study conducted by the World Bank will give signals that could help the government address this issue. But I think the solutions should be considered and implemented by the Tunisian government in consultation with the civil society
Tariff reform is essential with the liberalization of some products to reduce disparities between regions while trying to boost regional integration. Besides tariff reform, it is important to modernize control means which often have limited impact.
