The Effects of Fiscal Effort in Tunisia: An Evidence from the ARDL Bound Testing Approach

The purpose of this paper is to examine the various structural determinants revenue and tax effort in Tunisia. We used on empirical study an ARDL model estimate dynamic equation fiscal potential its non-structural covering period 1996–2017 results show that before 2010, Tunisia fully exploited potential, was above unity. After 2010 trend reversed. Despite increase burden, below potential. showed facing dramatic difficulties mobilizing more with same taxpayer base. As a result, it called upon orient reform actions towards two aspects: broadening base guarantee fairness adopting awareness motivation strategy aimed at greater compliance. should adopt reforms aim eliminate flat-rate regime put place advantages procedures facilitate motivate transition from informal formal. Finally, would be wise further regulate cash payments ensure application legal rules governing matter. In order optimize allocation budgetary resources ease pressure public finances, appropriate, even delay relation legislation fight evasion fraud by improving human material made available administration consolidating digitalization efforts.