2025 Budget Bill Proposes Reduced VAT on Low-Voltage Electricity for Domestic Use
The 2025 budget bill proposes a reduction in Value-Added Tax (VAT) on low-voltage electricity for domestic use. This measure aims to alleviate the burden on low- and middle-income Tunisian households, which represent approximately 93% of the national electricity grid subscribers.
The reduction would apply to consumers whose monthly consumption does not exceed 300 kilowatt-hours, reducing the VAT from 13% to 7%. This would result in a decrease of around 5% on their electricity bills.
This proposal is part of a progressive approach to supporting low-income households, while continuing to simplify the VAT regime.
Currently, low-voltage electricity sales for domestic use are subject to a 13% VAT, while high-voltage sales are taxed at 19%.
However, with this bill, only consumers exceeding 300 kilowatt-hours per month would continue to pay the 13% VAT.
It is worth noting that this initiative aligns with previous reforms, such as the 2019 VAT reduction on electricity used in agricultural irrigation equipment, which saw the tax rate decrease from 13% to 7%.
This VAT reduction is also part of a broader effort to improve Tunisians' purchasing power and alleviate the burden of domestic electricity consumption.
