Gas and fuel, circulation tax increases

A possible increase in turnover tax on fuels is expected to have a negative effect on daily consumption. In the final draft, which has not yet proposed by the Ministry of Finance for the fiscal package in 2014, this toll is expected to rise to 5 lek for diesel and 4 lek for gasoline.
Currently, the tax is 7 lek for both products and further growth is expected to be reflected in retail prices affecting consumers directly in their pockets. The expert in the hydrocarbon sector, Vladimir Puka, told RTV SCAN that the impact of rising prices on the market can be reduced, with stricter controls on operators to eliminate price abuses. In the draft proposed by the Ministry of Finance for the fiscal changes of next year, a second scenario for the circulation tax increase has been scheduled.

The negative effect on consumption in the case of the second option is expected to be even higher, since this tax increase on diesel as well as gasoline is projected to be 7 lek per liter. In case of application of the second scenario, only state taxes will reach a level of 50% of the retail price of fuel that the final consumer pays.

Scan TV 07.12.2013