Decree No. 3754 was issued, amending Decree No. 3214 issued on June 15, 2026, relating to fees imposed on materials and products that produce waste during their manufacturing process or after their use.
The new decree adopted a dual approach. On the one hand, it canceled the increase that had been imposed on a group of products depending on the quantity or type of waste generated from them, and returned the fees on them to the levels specified in Table No. 1 attached to Law No. 38 issued on January 5, 2026.
This amendment does not mean exempting the products listed in the First Schedule from the environmental fee, but rather is limited to canceling the new increase and reinstating the previous values specified under the law.
On the other hand, the decree re-determined the value of the environmental fee or tax imposed on another group of goods, according to new percentages calculated from the value of the product, which are exclusively stated in Table No. 2 attached to it.
The products included in the new amendment were divided into 3 main categories, according to their nature and the customs chapter under which they fall.
The decree set the environmental tax at 3% of the product value on Chapter 22 goods, which include beverages, alcoholic liquids, and vinegar, and on Chapter 24 products, that is, tobacco and manufactured tobacco substitutes.
It also imposed a 2% tax on Chapter 23 products related to food industry residues and waste, and Chapter 33, which includes oils and perfume and cosmetic preparations.
The 2% percentage also includes the products of Chapters 42 and 43, i.e. leather goods, travel supplies, fur skins and their articles, in addition to the products of Chapter 87 relating to motor vehicles, tractors, bicycles and other land vehicles, and Chapter 91 relating to watches and their parts.
As for the 1.5% environmental tax, it was imposed on a wider range of goods listed under Chapters 25, 29, 32, 38, 39, 40, 44, 48, 61, 62, 64, 68, 69, 70, 84, 85, 90, and 95.
This category mainly includes salt, sulfur, dust, stones, gypsum materials, lime and cement, in addition to organic chemical products, tanning and dyeing extracts and their derivatives, and various chemical products.
It also includes plastics, rubber and their products, wood, paper, cardboard and their products, clothing and shoes, stone, cement, porcelain and glass products, as well as machinery, equipment, electrical appliances, optics and photography tools, children’s toys and amusement and sports items.
Thus, the percentages specified in Table No. 2 constitute the new effective adjustment to the environmental tax calculated on the value of the products, while the goods listed in Table No. 1 will return to the previous duties after canceling the increases that had been applied to them.
Environmental fees are imposed on goods that result in an environmental impact or quantities of waste during their manufacture or consumption, with the aim of bearing down on the products a portion of the costs associated with collecting, treating, and disposing of these wastes.
It is assumed that the adjustment of the rates will be reflected in the costs resulting from importing the included goods or producing and marketing them, according to the category to which they belong, which makes determining the customs separation for each product essential for knowing the percentage of tax imposed on it.
