28th September 2023, Skopje – All commodities the citizens use on a day-to-day basis are part of the list of products to be taxed with 5% VAT preferential rate. List as adopted on the basis of a Decision by the Government, comprises over 1600 products, while being enriched with products such as electronic/digital textbooks and other products. Heating pellets remain to be also taxed with preferential rate as part of this list.
As per the adopted Decision by the Government, citizens will keep purchase the products with lower tax rates, such as: bread, white sugar, flour, sunflower oil, milk and cream, meat, eggs, cheese, cottage cheese, yellow cheese, fruits and vegetables, pasta, soups, ajvar, natural honey, salt, ketchup and similar.
List is lengthy, comprising a broad range of products, the citizens use every day. It is a matter of over 1600 products taxed at the lowest preferential rate.
Government as per the adopted amendments to the Law on Value Added Tax also adopted Decision on Applying Preferential Tax Rate of 10%, on products, which consumption is lower, and as such, treated as luxury products not being commodities. These products are the following: reindeer meat, salmon, blue cheese, tofu-type cheese, eel, flaxseed, palm and coconut oil, caviar, shellfish, tropical fruits such as papaya, mango, avocado, etc. The inclusion of part of the products that will be taxed at this rate is aimed at protecting the health of the citizens In fact, these two lists contain almost all food products that are used in the daily life of citizens.
Adopted decisions are primarily focused on safeguarding the living standard of the citizens and taxing the products, which are not part of the basic human nutrition, at fair tax rate. In addition, the purpose thereof is protecting the domestic production of food products, while also supporting domestic companies.
Decisions arising from the adopted amendments to the Law on Value Added Tax, which was part of the tax reforms, geared towards putting a contemporary tax system in place, to be based upon the righteousness and fairness.
In addition, for the purpose of safeguarding the living standard of the citizens, Government also adopted decisions on reducing the import duties on fresh vegetables (tomatoes, peppers, cucumbers, onions, leeks, cauliflower, broccoli, carrots, eggplant, zucchini, etc.) and rise, as well as abolishment of import duties on citrus fruits, i.e. oranges, lemons, grapefruit and tangerines.