New financial measures to stimulate investment

The Finance Ministry decided several financial and taxation measures to stimulate investment, notably in the inland regions, and to boost employment. These decisions consist in increasing the limit of the investment allowance to 1.5 million dinars (25% of amount of investment achieved) in the priority and border regions, to 1 million dinars in the inland regions and a halfway line (15% of the investment amount) and at 500,000 dinars in the coastal regions (8% of the investment values), said on Friday, Mr.  Mondher Ben Brahim, director in the general management of taxation and financial advantages in the Finance Ministry, during the regular meeting of the Prime Ministry's information cell. Decision was also taken to extend the duration of the State's support of the social security contribution of  employees, according to the regions. The State will support the whole contribution during 10 years in the priority regions and 5 years in the coastal regions. Regarding the halfway line regions, the State's support will cover a 10-year period, including 5 years of total support and 5 years of partial support. Other measures announced by the official include the increase of the State's support to the cost of external link of basic infrastructure networks (electricity, gas, communication, etc.). This increase will range between 15 and 85%, according to the regions. Besides, the Ministry decided to integrate investment allowance in the financing scheme of projects and shorten the date of repayment of the allowance. In order to stimulate investment in the regional development zones, decision was also taken to bring down from 12 to 6 % of customs duties on imported equipments and extension till January 2013 of law pertaining to exemption on profits from exports.