The Liberal Democratic Party of Macedonia (LSDM) has submitted a draft law to reduce Value Added Tax (VAT) on fuel from 18% to 5%, effective April 8, 2026. According to LSDM Deputy Sanja Llukarevska, the proposal is intended to safeguard citizens’ living standards and mitigate inflationary pressures. The draft law seeks to amend the VAT Law through an expedited procedure.
Currently, there is no preferential tax rate of 5% for gasoline and fuel. The LSDM proposes a reduction in VAT from 18% to 5% for all types of gasoline and diesel fuel. Llukarevska stated that this adjustment would assist citizens in maintaining their current standard of living.
The move follows concerns regarding rising fuel costs and their impact on household budgets. The expedited procedure suggests a swift legislative process is anticipated for the proposed change.
