After 15 years, the sales tax may be removed from the price of diesel and gasoline as the government decides to include this change in the 2027 fiscal package.
The initiative aims to ease the burden on consumers, at a time when fuel prices are being significantly affected by developments in international markets.
Currently, the price of each liter of diesel in Albania is burdened by several taxes. The excise tax is about 39.4 lek per liter, the circulation tax is 27 lek and the carbon tax is 3 lek. On top of the price and other duties, a 20% VAT is also applied.
But removing this tax could significantly reduce the price of oil and ease the burden on citizens who pay it on every liter of diesel.
Meanwhile, the circulation tax is 27 lek per liter and a 20% VAT is applied on top of this amount. Its removal would create space for a theoretical reduction in the final price of diesel and gasoline to 32.4 lek per liter. But the real reduction would depend on the full transfer of the fiscal effect to trading prices.
This move could further cushion the uncontrolled increase in fuel prices coming from the markets from which Albania imports them.
But this move would not create missing revenue in the state budget. Sources for Top Channel reveal that the government is considering transferring it to the vehicle tax. Thus, increasing the annual vehicle tax, increasing the tax on luxury vehicles and introducing electric cars into the taxation scheme.
The goal is to compensate for the revenue that the state budget would lose from this measure, aiming to maintain the overall level of collections.
If we focus on recent years, the budget through the turnover tax during the period 2023-2025 has collected an average of about 21.7 billion lek per year, while in 2025 alone, revenues reached about 24.2 billion lek.
The circulation tax was moved in 2011, moving from a fixed annual tax to fuel consumption. The fuel tax was initially set at 5 lek per liter, gradually increasing to 27 lek in 2015, a level at which it has remained to this day.