Tunisia Levels the Playing Field for Local Plastic Bag and Packaging Producers
Introduction
As of January 1, 2026, Tunisian producers of plastic bags and polyethylene packaging are no longer required to pay a tax that their foreign competitors already paid at customs. This change redraws the fiscal rules between the local industry and imports.
Background
The reform is based on Article 60 of the 2026 Finance Law (Law No. 17 of December 12, 2025). The General Directorate of Tax Studies and Legislation has published the implementation guidelines through General Note No. 5 of 2026.
The Environmental Preservation Tax (TPE)
The TPE, which has existed in Tunisia since 2003, targets plastic, chemical, and polluting products. Until now, it was perceived differently depending on whether the product was manufactured locally or imported. Local manufacturers paid the tax at production, while importers paid it at customs. As a result, imported finished products, such as plastic bags and polyethylene or polypropylene fabrics, could benefit from an exemption if their components had already been taxed elsewhere. This advantage was not available to local industrialists.
What Changes Concretely
The reform operates on two levels simultaneously:
- Expansion of the TPE scope: The reform extends the application of the TPE to the local production of bags and packaging made from polyethylene (PE) or polypropylene (PP). These raw materials, which make up the majority of common plastic bags, were previously in a regulatory gray area for domestic manufacturers.
- Exemption of local finished products: The reform exempts local finished products from the tax if their raw materials have already been subject to the TPE. In other words, if a Tunisian manufacturer buys polyethylene that has already been taxed, their final product will no longer be re-taxed upon release. This logic replicates the mechanism already applied to imports.
Objective
The objective, as stated in the note, is to put both channels on an equal fiscal footing.
Why Now?
The TPE is not new, having been created in 1992 to fund the fight against industrial pollution and gradually expanded. Its rate has increased from 2.5% in 2003 to 5% in 2004 and 7% since 2022. However, this increase had created a growing competitive gap, according to some operators, to the detriment of local industries. The 2026 reform aims to correct this by addressing the issue of double taxation that penalized Tunisian transformers using already taxed plastic materials.
Who is Affected?
The reform directly targets manufacturers of bags, sachets, films, and non-woven fabrics based on PE or PP. This sector includes both small packaging units and large industrial packaging groups. Exporters, who were already exempt from the TPE, remain unaffected by the reform. The tax only applies to the domestic market.
TPE in Figures
The revenue from this tax has been split between two funds since 2017: 70% goes to the Fund for Combating Pollution, and 30% to the Fund for Environmental Protection and Quality of the Environment. The new, expanded tax base could theoretically modify the collected volumes, but the note does not provide a numerical estimate of the budgetary impact.
