Tunisia’s 2027 Budget Bill Introduces Key Measures to Support the Olive Oil Sector

The draft Finance Law (PLF) for 2027 outlines two strategic measures designed to bolster Tunisia’s olive oil industry. These include a dedicated funding line of 100 million dinars for smallholder farmers and agricultural cooperatives, as well as the establishment of a special Treasury account focused on the sector’s development.

Dedicated Funding for Smallholders and Cooperatives

Article 37 of the draft law establishes a financing line to be funded from state budget resources over a four-year period, from January 1, 2027, to December 31, 2030. This funding will be used to provide seasonal and investment credits at preferential interest rates to smallholder farmers and agricultural service cooperatives active in the olive oil value chain.

Management of this fund will be entrusted to the National Agricultural Bank (BNA), based on an agreement with the Ministry of Finance. This agreement will define the specific conditions and procedures for accessing these financial resources.

Establishment of a Special Treasury Account

Complementing this financing mechanism, Article 38 provides for the creation of a special Treasury account named the “Olive Oil Industry Account.” This account is intended to contribute to the promotion and development of the olive oil sector.

Under this provision, the Minister responsible for Agriculture will be authorized to order expenditures from this account, which will have an evaluative character.

Funding Sources

The resources for this special account will primarily come from:

• 10% of the proceeds from export duties applied to:
  • Unpackaged olive oil
  • Unpackaged crude olive pomace oil
  • Unpackaged crude olive pomace oil (as specified in the relevant legal provisions cited in the draft)
• The remaining balance of the contribution fund account No. 15, titled “Olive Oil Industry Account”
• Donations and other resources that may be allocated to the account in accordance with current legislation

Regulatory Adjustments

The draft law also proposes reducing the rate mentioned in the second paragraph of Article 16 of the 2024 Finance Law from 50% to 40%. The specific conditions and operational procedures for the new special account will be established by a regulatory decree.