The prices of fuels in North Macedonia will be decreased as of 13 March as a result of the measures taken to reduce VAT and excise duties, in order to reduce the price shocks due to the war in Ukraine.
According to the adopted amendments to the laws on VAT and excises, the price of gasoline will be reduced by 0.11 euros per liter and diesel by 0.15 euros per liter.
This decision makes it possible to calculate a further reduction of the excise duty on unleaded petrol, gas oil as a fuel and gas oil as a heating fuel depending on the movement of price of these energy sources on global markets.
The Government also adopted a decision on determining the type of goods and the time period of application of the preferential VAT rate. This decision makes it possible to apply a preferential tax rate of 10 % on the turnover and import of energy, for a certain period of time under certain conditions.
In the next three months, i.e. by the end of May, the VAT rate on basic foodstuffs will be reduced from 5 to 0 % and the fuel tax will be reduced from 18 to 10 % as well as the excise tax by to 0.07 euros. Previously introduced preferential VAT rate of 5 % on electricity for households continues until the end of 2022.
