9th December 2022, Skopje – Ministry of Finance, under the transparent and inclusive policy making process, debate about initiating the introduction of extra profit tax was launched. Today, in MoF’s building, Minister of Finance, Fatmir Besimi held a meeting with the business community, attended by representatives of the biggest chambers of commerce, Chamber of Commerce of North Macedonia, Macedonian Chambers of Commerce, Chamber of Commerce of North-West Macedonia and Macedonian Banking Association.
“Initiative to introduce extra profit tax arose from the debate organized by the Ministry of Finance, pertaining to the tax reform concept, starting 1st January 2023. This initiative is also guided by the EU-level policies undertaken in the past period, aimed at mitigating the direct economic effects of the sharp rise in energy prices on the public budgets, the final consumers and the businesses in the EU Member States. In the light of transparency and inclusiveness, we are now putting this initiative back to the table, for the purpose of its consideration with the stakeholders, all to the end of choosing a model that is most acceptable to all”, Minister of Finance said at the meeting, pointing out that the acceptance of such a solution by the business community will be a sign of solidarity in a society in such times of crisis.
He went on that Ministry of Finance is carrying out in-depth analysis of the fiscal effects from the introduction of such a tax, while considering the experience of other countries already having introduced such a measure.
“It is a matter of temporary taxes introduced amid exceptional circumstances such as the energy and the price crisis. It is a solution that has already been applied by some of the countries in the region and Europe. Thus, among the countries having introduced such measure is Great Britain, announcing the increase of energy profits levy to 35% for the period 2023-2028 for the energy firms. Hungary announced extra profit tax in the energy sector, the financial sector, the commercial airlines and the retail trade in the period 2022-2023, with the tax rate in the energy sector reaching 65%. Croatia announced extra profit tax for all companies generating revenues higher than EUR 40 million annually, on a profit increase higher than 20% of their annual average in the period 2018-2021, as well as Italy, which announced extra profit tax of 50% on energy companies’ profit higher than 10% of the average income in the period 2018-2021, to be applied in 2023.
Analyses, experience of other countries, as well as proposals that will stem from the debate with the stakeholders will be taken into account when designing the model. This is the model Ministry of Finance applied when conceptualizing the tax reform announced by the Government, being already presented to the public, which should be applied gradually as of January 2023. This tax reform aims to ensure fair, efficient, transparent and modern tax system based on state-of-the art digital technologies and innovations, all to the end of attaining an accelerated, inclusive and sustainable economic growth. Tax reform fundamentals were laid under the Tax Reform Strategy, adopted by the Government at the end of 2020.