TUNIS // Ahead of Tunisia's parliamentary elections on Sunday, acting prime minister Mehdi Jomaa said politicians should stop making the overly optimistic promises seen following the uprising against Zine El Abidine Ben Ali in 2011.
"The mistake made immediately after the revolution was to say that all the disparities were going to disappear, that everyone was going to have a job and so on," Mr Jomaa said. "The whole of the Tunisia's political class made this mistake." Three years later, the country's public-sector payroll has swollen to around 600,000, with many of the jobs going to former political prisoners and relatives of those injured or killed in the revolution against Ben Ali's rule. Commitments made to lower the disparity in living standards between coastal towns and the marginalised interior have gone largely unfulfilled.
Fledgling politicians elected to a new assembly in October 2011 debated a document that now enshrines the right to free health care for those on low incomes, and the right to work. "That was a political period par excellence, with a lack of focus on the economy," Mr Jomaa said. The ideological strife triggered by the constitution drafting could now be a thing of the past, Mr Jomaa said, as the country seeks prosperity in a strong economy.
"The role of my government since January has been to put economic issues back in the centre of the debate, to show how important they are. Because without economic issues being tackled, we won't have stability on the social front, and without that this democratic experiment won't translate into permanent change."
The government that will be formed after the elections "will be obliged to focus on the economy", he said, adding that in recent months his administration had encouraged public debate on economic policy by releasing more data and indicators than were ever released under Ben Ali.
Mr Jomaa spoke to The National in his office in Dar El Bey, a historic building in Tunis's old city where the Ottoman-era bey once lodged his visitors.
A former engineer, he was appointed prime minister in January, at the end of a political crisis that almost threw Tunisia's transition to democracy off-course.
His task was to put together an interim cabinet of politically unaligned technocrats that could run the country until fresh parliamentary and presidential elections.
In an opinion poll released last week by the independent US-based Pew Research. Mr Jomaa was given an 81 per cent approval rating by those polled, outstripping in popularity longer established public figures. His understated style was appreciated by Tunisians who have lived through some periods of turmoil since 2011, and he leaves office widely respected, most likely to continue his business career.
Sunday's parliamentary election will be followed by a November 23 presidential election, with a run-off likely on December 28 if no candidate gains more than 50 per cent of the vote.
Some analysts anticipate a close result in the parliamentary poll: the Islamists of the Ennahda Party are expected to face a challenge from the new, centrist Nida Tounes party - despite the new party's associations with the old regime.
The election is likely to be followed by weeks of deal-making.
"I would say it's highly probable that we will have a government in place in February," Mr Jomaa said. "But all that has yet to be finalised by the political parties" in meetings with representatives of the National Dialogue, said Mr Jomaa, referring to the tripartite group consisting of Tunisia's UGTT trade union federation, the UTICA business association and the Bar Association representing Tunisian lawyers. This group was key during the political crisis of 2013, when it persuaded parties at loggerheads to accept a deal in which the Islamist-led coalition government ceded power to Mr Jomaa's non-party administration.
Fiscal reforms enacted this year, along with selective cuts in fuel subsidies designed to target the middle class rather than low-income Tunisians, are projected to help reduce the country's budget deficit to an expected 5.8 per cent of GDP by the end 2014, rather than the 9.2 per cent it would have been without these reforms, Mr Jomaa said.
Basic foodstuffs such as bread and pasta remain heavily subsidised, but there is a freeze on public-sector hiring.
Mr Jomaa said that after the elections, both Tunisian and foreign investors would have better "visibility" in a more stable political environment. Long-awaited reforms on regulations for foreign and domestic investment are likely to be on the agenda of the next government.
Mr Jomaa said that along with the economy, his government had focused on regional ties and security, Mr Jomaa said
Instability in Libya since the overthrow of Muammar Qaddafi has been a major drag on economic recovery since the revolution.
Although the Tunisian government has been trying to promote dialogue among Libyans, it is realistic that the instability there will limit the recovery of that major market for Tunisian goods and services, Mr Jomaa said.
"In our budgetary planning we are factoring in a situation in Libya that continues to deteriorate," he said.
Relations with Tunisia's other neighbour, Algeria, have also been given priority by the Jomaa government during its nine months in office.
With the emergence of armed Islamist groups in Tunisia's western mountains, cooperation with the Algerian security forces has been important.
He said: "In all our anti-terrorist efforts of the last nine months, the objective has been to stabilise the country, make it secure and also to create a suitable security environment for the elections."
These militant groups see the success of Tunisia's transition towards democracy as a threat to their goals, he said.
Tunisia has moved forward from a very vulnerable position following the 2011 revolution to a situation where "we are in the process of building a very solid state". he said.
"The more they persist the more we have been re-establishing our control on the ground. I'm confident that the elections will go smoothly, because of the preparations in terms of security, for protecting polling stations, for distributing electoral material and collecting the voting returns."
Around 50,000 members of the police and national guard, will be mobilised on election day, along with 30,000 soldiers.
The armed groups do not want to see "a country that is making a success of building a state", he said.
"The state has now made a strong comeback, and it's strong because it has legitimacy and the support of the population, as well as through the effective deployment of its security forces."
foreign.desk@thenational.ae
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tips from the expert
Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.
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The specs: 2018 Audi Q5/SQ5
Price, base: Dh183,900 / Dh249,000
Engine: 2.0L, turbocharged in-line four-cylinder / 3.0L, turbocharged V6
Gearbox: Seven-speed automatic / Eight-speed automatic
Power: 252hp @ 5,000rpm / 354hp @ 5,400rpm
Torque: 370Nm @ 1,600rpm / 500Nm @ 1,370rpm
Fuel economy: combined 7.2L / 100km / 8.3L / 100km
MATCH INFO
Manchester United 1 (Fernandes pen 2') Tottenham Hotspur 6 (Ndombele 4', Son 7' & 37' Kane (30' & pen 79, Aurier 51')
Man of the match Son Heung-min (Tottenham)
UAE%20medallists%20at%20Asian%20Games%202023
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MATCH DETAILS
Barcelona 0
Slavia Prague 0
Match info
Bournemouth 0
Liverpool 4 (Salah 25', 48', 76', Cook 68' OG)
Man of the match: Andrew Robertson (Liverpool)
Company%20Profile
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More on Quran memorisation:
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
More coverage from the Future Forum
If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).
PRIMERA LIGA FIXTURES
All times UAE ( 4 GMT)
Saturday
Atletico Madrid v Sevilla (3pm)
Alaves v Real Madrid (6.15pm)
Malaga v Athletic Bilbao (8.30pm)
Girona v Barcelona (10.45pm)
Sunday
Espanyol v Deportivo la Coruna (2pm)
Getafe v Villarreal (6.15pm)
Eibar v Celta Vigo (8.30pm)
Las Palmas v Leganes (8.30pm)
Real Sociedad v Valencia (10.45pm)
Monday
Real Betis v Levante (11.pm)