Over 10 thousand electric vehicles circulating in Albania are expected to be included in the new taxation scheme. For the first time, a new fee will also be applied to foreign vehicles entering Albanian territory.
The changes are part of the new fiscal package, which provides for the removal of the circulation tax from fuel prices and its transfer to annual vehicle taxes.
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Specifically, in the amendments to law no. 9975, dated 28.7.2008, “On National Taxes,” as amended, the introduction of a fixed annual tax for electric vehicles is provided, depending on their category.
The draft law proposes that for electric cars, buses and other categories of vehicles the tax level be 15,000 lek per year, while for electric motorcycles the obligation will be 1,000 lek per year. Currently, electric vehicles are not subject to annual tax.
Over 10 thousand electric vehicles in the country will be affected by these changes, according to sources from the Ministry of Finance.
Another innovation is the introduction of a circulation tax for foreign vehicles entering Albania. The interventions were announced by Prime Minister Edi Rama during the presentation of the fiscal package.
“We will remove the circulation tax from the price of diesel and automatically lower the price of diesel at the pump by 32 lek, while returning the tax to the vehicle and collecting it through the relevant Road Transport Directorate.
On the other hand, we will introduce a new circulation tax, as all of Europe has, for foreign cars entering the territory of the Republic of Albania,” declared Prime Minister Edi Rama during the presentation of the measures.
Sources from the Ministry of Finance confirmed that the new fee for foreign cars entering the country is expected to be determined based on the days of stay in Albanian territory.
According to data from the Ministry of Finance, during the first 9 months of the year, about 2.6 million vehicles with foreign license plates entered the country.
The removal of the circulation tax from fuels and its shift to vehicles is expected to change taxes for a range of categories, including used vehicles and luxury vehicles.
For used vehicles after the changes, the annual tax obligation is expected to increase up to doubling from what is currently paid. According to the new taxation formula, a diesel vehicle with production year 2013 and 2,000 cc engine capacity will pay 18,000 lek per year, up from 9,000 lek currently.
Changes are also provided for luxury vehicles. The annual tax for this category is proposed to increase from 21,000 to 40,000 lek, or 19,000 lek more per year, or 90% more than currently paid. This measure is expected to bring about 430 million lek additional revenue to the state budget.
With the new fiscal package, the shift of the 27 lek per liter circulation tax from fuels to annual vehicle taxes is expected to increase tax revenues from vehicles by 7.2 billion lek. Currently revenues for this category amount to 26.6 billion lek. After the changes, their level is projected to reach 33.8 billion lek.
The net effect of this measure, according to the draft law’s explanatory report, is calculated as a revenue decrease of 5 billion lek by the Ministry of Finance. Meanwhile, fuel prices are calculated to fall by 32.3 lek per liter. / Monitor
