Automotive Industry Leaders Call for Fiscal Reform to Boost Local Production
Automotive industry leaders estimated, during a joint meeting of the Finance and Budget Commissions of the People's Representatives Assembly and the National Council of Regions and Districts on the 2026 finance bill, that the current tax system does not encourage investment in local production. According to them, cars manufactured in Tunisia are subject to customs duties and consumption taxes, unlike vehicles imported by dealers, which are not subject to customs duties. The consumption taxes on these vehicles are calculated solely on the arrival price at the port.
The industry leaders called for the exemption of automotive components used in local manufacturing from customs duties and consumption taxes, as well as a reduction of the VAT on these components to 7%.
During this meeting held on Friday, November 14, 2025, the people's representatives emphasized that strengthening national autonomy involves supporting the Tunisian industry. They inquired about the employment capacity, turnover, production volume, and integration rate in the automotive component sector. According to them, promoting the local industry is an essential step towards forming a national automotive industry.
Key Points:
- The current tax system hinders investment in local automotive production
- Cars manufactured in Tunisia are subject to customs duties and consumption taxes
- Imported vehicles are not subject to customs duties, with consumption taxes calculated solely on the arrival price at the port
- Industry leaders call for exemption from customs duties and consumption taxes for automotive components used in local manufacturing
- A reduction of VAT on these components to 7% is also requested
- Promoting the local industry is seen as essential for forming a national automotive industry and strengthening national autonomy.
