Government to consider cutting fuel VAT from 18 to 10 percent today

Prime Minister Hristijan Mickoski announced that the government will meet today to approve a new measure aimed at curbing rising fuel prices, providing for a reduction in VAT from 18 to 10 percent.

The decision is expected to be taken one day before the next review of fuel prices by the Energy Regulatory Commission. According to Mickoski, the tax cut should also lead to a reduction in fuel prices.

“We have already taken measures regarding fuel, including cutting the excise duty on diesel and unleaded fuel. Today we will hold another government session, where we will approve the reduction of VAT from 18 to 10 percent. We expect this to contribute to lower fuel prices,” Mickoski said.

The prime minister said the tax cuts would directly affect state budget revenues, but stressed that the government’s main objective remained preserving citizens’ living standards.

“This measure will have consequences for the budget; however, our interest is to protect citizens’ living standards. It is not easy, and we will continue to fight. We are facing several challenges, including the biggest energy crisis,” the prime minister said.

Mickoski also said that, although prices are high, fuel in Macedonia will continue to cost less than in neighboring countries.

“Fuel prices will remain significantly lower. Is it really cheap? No. But it is cheaper than in neighboring countries, where people pay 150, 180 denars and so on,” Mickoski said.

The measure will be discussed at today’s government meeting, which is being held shortly before the Energy Regulatory Commission’s next decision on retail prices for petroleum products.