The Joint Note No. 5/2026 of the Directorate General for Studies and Tax Legislation clarifies the practical scope of Article 60 of the 2026 Finance Law. Since January 1, 2026, several categories of fabrics, bags and flexible containers made from polyethylene or polypropylene fall under the environmental protection tax, whether imported or manufactured in Tunisia.
The central idea is not the creation of a new tax or an increase in its rate. The Environmental Protection Tax (EPT) has existed since 2003. Initially set at 2.5%, it rose to 5% in 2004, then to 7% in 2022. This 7% rate remains unchanged in 2026. The reform mainly broadens the scope of affected products and aligns the treatment of imported products with that of locally manufactured finished products.
Until December 31, 2025, some plastic inputs already bore the EPT, whereas all comparable finished woven products were not treated identically depending on their origin. Article 60 aims to correct this discrepancy. But it also introduces an essential mechanism: when a product manufactured in Tunisia is made from inputs that have already borne the tax, it may be exempt at the final stage to avoid cascading taxation.
The reform does not therefore constitute a general exemption granted to the domestic industry. It creates a common regime for imported and local products, while distinguishing manufacturers depending on whether their inputs have already borne the EPT.
Remaining questions are which products are precisely concerned, when the tax becomes due in practice, and what verifications industries must perform to secure their tax position.
