Government decided to reduce excises on used vehicles and 90 percent of the new vehicles and set new model on calculating this duty based on vehicle value, rather than engine volume as so far, Vice Prime Minister and Minister of Finance, Zoran Stavreski said at today’s press conference.

According to the offered calculation model, vehicles with an invoice value up to EUR 3, 000 are excise exempted. Excise on all vehicles with an invoice value up to EUR 6,000 is EUR 90. Excise reduction ranges between EUR 50 and 600 EUR, depending on vehicle value, while with respect to around 10 percents of the vehicles, falling in the category of luxury vehicles, excises increased.

– Offered solution will provide for the vehicle stock in Macedonia to be significantly replaced with newer, safer and more eco vehicles, and we will at the same time resolve the issue of the citizens, driving cars with foreign registration plates in a much favourable manner for them. In addition, we will prevent occurrence of more serious distortions on the market of new vehicles, at the same time applying a fiscally neutral model, i.e. there will be no losses in the Budget, Stavreski said, adding that depending on the reactions to the application, certain positive budget implications are possible.

Offered calculation model envisages 0,5 percents or EUR 20 excise for vehicles with invoice value between EUR 3,000 and EUR 4,000, 1 percent or EUR 50 excise for those with invoice value between EUR 4,000 and EUR 5, 000, and 1.5 percents or EUR 90 excise for vehicles with invoice value between EUR 5,000 and 6,000. Two percents or EUR 170 excise will be paid for vehicles with invoice value between EUR 6,000 and 8,500, 3 percents or EUR 360 excise for those with invoice value between EUR 8,500 and EUR 12,000, four percents or EUR 560 excise for those with invoice value between EUR 12,000 and EUR 14,000, six percents or EUR 960 excise for those with invoice value between EUR 14,000 and EUR 16,000, vehicles worth between EUR 18,000 and EUR 22,000 will be charged 11.5 percents or EUR 2,539 on the basis of excises, excise for vehicles worth 13 from EUR 22,000 to EUR 25,000 will account for 13.5 percents or EUR 3,375. Vehicles, invoice value of which ranges between EUR 25, 000 and EUR 30, 000 will be charged 15,5 percents or EUR 4,560, while excise for those with invoice value exceeding EUR 30, 000 will account for 18 percents or EUR 6,300.

Giving examples for the excise reduction, Stavreski said that EUR 234 was paid as excises for vehicles worth between EUR 5 and EUR 10, 000 according to the existing model, while by applying the new model, excises for same vehicles will range between EUR 80 and EUR 200. As for the more luxury vehicles, excise ranged between EUR 2,000 and 8,000, and according to the new model it will range between EUR 3,000 and 8, 500, depending on the value of such vehicles.

According to Stavreski, there will be drastic drop of total price of used vehicles. So far, excise amounting to EUR 1,800 or total of EUR 6,500 including all duties was paid when importing “Opel Astra” with 1,800 cubic centimeters of engine volume and purchase value of around EUR 4,000. According to new excise calculation model, excise in the amount of EUR 20, i.e. total of EUR 4,745 or EUR 1,800 less will be paid for the same vehicle, Stavreski said.

Minister of Finance claims that the new excise calculation model will not cause any changes in the Budget projections upon this basis. Inflow of proceeds on the basis of excises in the Budget ranges between EUR 8.5 million and EUR 10 million annually, depending on the year.(MIA)

According to Stavreski, prior to adopting the decision, vehicle importers were consulted, who, as he claims, positively reacted in general. Legal changes for excise reduction will be submitted to the Parliament next week and will enter into force after their adoption, probably within around 20 days, Minister of Finance announced. Stavreski believes that the changed excise calculation model corresponds to the experience in other countries and the nature of their collection, since it is a matter of duty being mainly charged on luxury commodities. I do not think that it is a matter of ideology, but rather of practical and pragmatic solution, through which we try to meet the needs of the citizens and living standard level. On the other hand, if someone is ready to pay EUR 40,000 for vehicle, it is probably logical for that person to pay higher excises, Minister Stavreski said, pointing out that there will be also analyses of the other costs related to vehicle registration.