24th March 2026, Skopje - Measure to reduce VAT on petroleum products from 18% to 10% is not delayed, thereby safeguarding the living standard of citizens, Deputy Minister of Finance, Nikolche Jankulovski, highlighted in his TV 24 guest appearance.
"The measure to reduce VAT from 18% to 10% is on schedule. We are monitoring the developments, but the reality is that no one, not even the academic community can determine when the conflict will end. Ministry of Finance has developed several scenarios in cooperation with an inter-ministerial committee comprising representatives of the Ministry of Energy, Mining and Mineral Resources, the Ministry of Economy and Labor, the State Market Inspectorate, and the Commission for Protection of Competition. These scenarios are being reviewed, and certain targeted measures remain under consideration, which could be implemented in case of a potential escalation of the events in the Middle East,” the Deputy Minister pointed out.
He further noted that the measure has been put into effect at this stage, with targeted measures also under consideration.
“While it is too early to draw any conclusions, the objective remains to safeguard citizens’ living standard. We keep records of the prices that have increased and the scale of each change. State Market Inspectorate is conducting field inspections to verify whether retail prices are dictated by input costs or if any malpractices are involved. We are awaiting the outcome therefrom. Should any irregularities be detected, appropriate penalties will unquestionably be imposed, Jankulovski stated, thereby highlighting that developments will be monitored on a daily basis, and based on the respective reports, decisions will be made whether to proceed with targeted measures and which specific measures will apply, all to end of safeguarding the living standard of citizens. He further emphasized that there is currently no fuel shortage and that none is anticipated over the next 60 days.
He also pointed out that from the outset, the Government has been in communication with the business sector, energy companies, food producers, and distributors, and that this is not an ad hoc solution, as was the case in 2021 and 2022 when annual inflation reached 14%.
“From the very first moment in office, this Government has been fully committed to fiscal consolidation and reducing inflation. Inflation stood at 4.1% in December, 3.2% in January, followed by 2.9% in February. Only this Government fully understands the challenges surmounted and the measures implemented to reduce the budget deficit as a key parameter of fiscal consolidation— reducing from 4.4% in 2024 to 4% in 2025, and, barring any unforeseen developments, it is anticipated that 2026 will close at 3.5%. These fiscal consolidation and financial stability parameters, the increase of revenues, along with the measures we have implemented and will continue to implement to safeguard the standard of living, will allow us to accomplish the objectives outlined in the revised Fiscal Strategy,” Jankulovski said.
“During the guest appearance, he emphasized that the Budget is liquid and that the Government is fully committed to economic growth. In the event of extreme developments that could affect the economic growth, the Government will provide a realistic, responsible and transparent explanation of the arguments behind any adjustments to the projections planned for 2026.
