The Assembly of People’s Representatives (ARP) approved Article 56 of the 2026 Finance Bill, which provides for a gradual reduction of the tax burden on retirement pensions, reports Express FM.
Article 56 stipulates a 25% reduction starting January 1, 2027, 40% starting January 2028, and 50% starting January 1, 2029.
It should be noted that Minister of Finance, Mickhet Slama Khaldi, opposed this measure.
She recalled that 56% of retirees (70% of private-sector retirees and 18% of public-sector retirees) receiving less than 5,000 dinars in annual taxable income already benefit from a full exemption from income tax and the social solidarity contribution, highlighting the risk to the medium-term sustainability of public finances as well as the financial risk for social security funds.
Mickhet Slama Khaldi also pointed out the lack of tax equity in this measure, as the tax reduction will increase in line with the rise in retirement pensions.
