Fiscal relief for fuel: North Macedonia, Italy, Spain and Cyprus support citizens

North Macedonia has joined the ranks of countries that have decided to intervene to ease the escalating fuel prices.

From September 15 to 28, the government has decided to reduce VAT on diesel products from 18% to 10%, while the excise tax reduction also remains in force. Taking diesel as an example, the overall impact of these measures amounts to around 7 denars per liter, thereby preventing an additional increase in the burden on consumers’ pockets. The final price per liter stands at 99 dinars, or the equivalent of 1.48 euros.

Meanwhile, Italy has also decided to extend until September 17 the excise tax relief on diesel, which amounts to around 17 cents per liter. The measure represents an effort to protect both families and businesses from significant increases in quotations on global markets. Along the same lines, Spain is implementing temporary tax reductions for both gasoline and diesel. Cyprus, meanwhile, has extended until the end of November the fiscal relief of 8.33 cents per liter for both types of fuel.

Other countries have also adopted support measures, ranging from excise tax cuts and refunds to direct subsidies. The respective governments are seeking to absorb part of the costs of the energy crisis by sacrificing tax revenue, with the ultimate aim of easing the burden on consumers. The objective is to prevent the increase in the price of diesel from being immediately reflected in a sharp rise in the cost of transportation, food and other essential products.