Tunisia Introduces New Taxation System for Cars
As of January 1, 2026, Tunisia is implementing a new taxation system for cars, with the aim of encouraging the use of less polluting vehicles and developing an industry around batteries. These measures are outlined in the 2026 finance law and explained in a joint note (number 6) published by the General Directorate of Tax Studies and Legislation.
Benefits for Hybrid Rechargeable Cars
Hybrid rechargeable cars are the most advantaged by this new system. These cars can be plugged into an electric power source and will no longer be subject to consumption tax. The Value-Added Tax (VAT) will be reduced from 19% to 7%. Certain cars will also be exempt from customs duties, making the purchase price lower.
Difference Between Hybrid Rechargeable and Classic Hybrid Cars
There is a difference between hybrid rechargeable and classic hybrid cars. Classic hybrid cars have fewer advantages. The 50% reduction in consumption tax only applies to cars with small engines: up to 1700 cm³ for gasoline and 2100 cm³ for diesel. Larger cars will pay the standard tax.
Reduced Costs for Electric Charging Stations
The cost of electric charging stations will also be reduced. Customs duties will be reduced to 10% and VAT to 7%. These measures will be valid until December 31, 2028, and are intended to encourage the installation of more charging stations in Tunisia.
Lower Registration Fees
The fees for registering a car will also be reduced. There will be a 50% reduction in certain taxes, mainly affecting hybrid rechargeable cars.
Support for the Lithium Battery Industry
The state will also support the lithium battery industry. The materials used to manufacture these batteries will be subject to a 7% VAT and will not be subject to customs duties if they are not manufactured in Tunisia.
