Oil price up with 6.2 ALLl

After the law entered in act, diesel and gasoline prices went up with 6.2
ALL per litre, including VAT, automatically increasing the prices for
the consumer.

The latest price hike breaks an historical record of 180 ALL per
litre, which wasn’t seen in Albania even during the crisis of 2008. This
comes only due to the unstoppable tax increase on oil.

Hidden tax on cars

The Finance Ministry says that the removal of the customs tax, together with the circulation and registration tax will be compensated only through increasing oil tax with 6.2 ALL per litre. The Ministry says it as if the new formula doesn’t affect the citizens, but in fact it is the contrary.

Increasing tax for oils seems that favours those who buy cars from abroad, but this price increase will bring a chain reaction to the price of other services and goods, whose transport will be more expensive and will be paid by the citizens.

But these are not the only changes. There is another additional tax, which seems hidden in the new formula, and that will be paid each time that the drivers will make the obligatory vehicle check at state authorities. The citizens will pay a tax for the years that the vehicle has circulated in the territory of Albania; a new tax that wasn’t included in the circulation and registration tax. Both these payments and the annual obligation are based on the age of the car and price increase. Although there will be no custom tax, the new moves are a heavier burden for the citizen.

The Finance Ministry explains that the new tax will add 40 million to the state budget, which means that no matter how the tax is distributed and divided, the citizens will pay to the government 40 million USD more than with the old law. This burden will be heavier after each year, since the tax is based on the age of the cars in the domestic market, and also because next January there will be another excise tax of 2 ALL per litre on gas.

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