Tunisia’s parliament has approved the Finance Bill 2025 (pdf) which includes proposals on green funding and EV and solar panel taxes, according to a statement (watch, run time: 05:34). Here’s what we know so far about the green sector portions of the bill.

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#1- EV-related taxes: The bill maintains previously passed reduced tax rates and fees on EVs, while extending some of the incentives to hybrid vehicles. It maintains a 2022 exemption of customs duty on EVs, a 2023 reduced value-added tax rate of 7%, and a 50% reduction in registration fees. Meanwhile, it also proposes removing the consumption tax imposed on hybrids similar to EVs, as well as reducing the value-added tax from 19% to the lowest possible tax of 7%, similar to EVs. It also proposes extending the reduced customs duty of 10% on EV chargers and the value-added tax rate of 7% until December 2027.

Tunisia has two taxes on consumption: The country alleviates two main indirect taxes on consumption, namely the VAT and the consumption tax. They are applied through single rates, and are dubbed as “regressive tax” in a report (pdf) by the German international thinktank Friedrich-Ebert-Stiftung. Combined together, these taxes raised 37.7% of the country’s tax revenues.

EV uptake in the Tunisian market has been very slow due to infrastructure limitations, Independent Arabia reported in September. The country is yet to expand its charging stations, which currently stand at around 100 charging points, according to government data cited by Independent Arabia.

What is the government doing about it? A new law regulating EV charging as a utility is currently being prepared by the government, Independent Arabia reports citing the energy transition secretary at the Ministry of Industry and Energy Wael Chouchane. The law will open the door for private providers to sell charging services, a first in the country that currently limits electricity sales to government entities.

#2- Solar panel taxes: The new bill proposes extending the current 10% customs duty rate imposed on solar panel imports in Tunisia since 2022, which was set for an increase to 30% starting in 2025 after law changes this year. The bill cites local companies' inability to meet market demands in terms of both quantity and quality, and the need to keep the cost of electricity production down, which is borne by the state.

#3- Support for green + blue companies: The bill proposes expanding the scope of the Pollution Control Fund to include a new TND 20 mn financing line for investments in the green, blue, and circular economy projects. The line would focus primarily on medium and long-term loans, with favorable conditions for entrepreneurs and companies. The management of the fund is to be entrusted to banks through agreements with the Ministry of Finance and the Ministry of Environment, which will determine terms and procedures.

About the fund: The fund contributes to financing operations aimed at reducing pollution, particularly those related to the collection and recycling of plastic waste, financing public waste management systems, and covering the operational expenses of the National Waste Management Agency. It also contributes to the costs of household waste treatment, and the fixed and operational costs related to the treatment of industrial and special waste.