Case Study

Reforming Tunisia’s Fiscal Foundations for Economic Growth

How Data and Technology Modernized Tunisia's Tax System
Public Financial Management

The Challenge

In the wake of economic instability and political transitions, Tunisia faced mounting fiscal deficits, low tax compliance, and outdated tax administration processes. The Ministry of Finance lacked the tools to efficiently collect revenues, forecast budgets, and communicate effectively with taxpayers. These challenges hindered the country’s efforts to establish a sound fiscal foundation and stifled private sector confidence.

Our Solution

Promoting the Adoption of a More Adaptive, Compliant Tax System

  • Modernized Tax Systems. Working collaboratively with Tunisia’s Ministry of Finance, Chemonics introduced digital taxpayer self-service portals, upgraded fiscal information systems, and developed microsimulation models to analyze tax gaps and project policy impacts.
  • Adaptive Programming Amid Crisis. When the COVID-19 pandemic struck, we swiftly supported the Ministry of Finance in analyzing fiscal impacts and designing emergency tax policy responses. The team recommended eliminating budgetary silos and enhancing transparency through public-private consultations.
  • Voluntary Compliance and Outreach. We developed a Taxpayer Guide and co-launched public campaigns to raise fiscal citizenship awareness. We trained over 70 Ministry of Finance staff in Tax Administration Diagnostic Assessment Tool (TADAT) methodology, and a three-year compliance strategy was introduced to encourage voluntary filing and improve taxpayer services.
  • Internal Efficiency and Capacity Building. We supported the re-engineering of internal Ministry of Finance business processes, developed dashboards to monitor tax administration, and created a virtual library housing all fiscal policy tools, guides, and training materials. We trained more than 100 tax officials in targeted audits and dispute resolution.

The Impact

Improved Policy-Making, Public Engagement, and Tax Collection

With Chemonics’ assistance, Tunisia tripled levels of electronic filing in only three years. We also supported the implementation of a national audit strategy, and installation of a secure webcasting system to efficiently connect 13 Ministry of Finance offices. These reforms modernized tax administration, promoted accountability, and laid the groundwork for long-term economic stability.