Skopje, North Macedonia Again Considers VAT Reduction on Fuels

Prime Minister Hristijan Mickoski announced that the executive is preparing new interventions to cope with the relentless rise in fuel prices.

Currently, according to him, it is being assessed whether the measures will be targeted or universal, as in previous periods.

One alternative on the government’s table is also the reduction of the Value Added Tax for fuels. Mickoski stressed that after the declaration of a state of emergency nationwide, the institutions have the legal basis to act in this direction.

“We are monitoring the situation. As a government, we have already taken the first step by reducing part of the excise duty on petrol and diesel, but unfortunately, global markets continue to register price increases. Today we are again approaching the symbolic threshold of 100 dollars per barrel, while military tensions in the Persian Gulf are intensifying,” Mickoski stated.

He added that the government is examining the nature of the intervention, underscoring that the well-being of citizens remains a top priority.

Asked about the possibility of reducing VAT on fuel derivatives, Mickoski confirmed that this path is also being considered, although it is not the most preferred option due to its effect on the state budget.

“Yes, this is also part of the scenarios we are evaluating. It may be the least desirable alternative, as it directly affects budget revenues, but for us the primary interest is the standard of living of the population. When the situation requires it, as an executive we are determined to stand by the citizens,” Mickoski concluded.