The proposed changes in the fiscal package to transfer the turnover tax from fuel to vehicles are expected to increase the annual tax on used vehicles by up to 2.7 times. Monitor has calculated the new tax for vehicles with cylinders up to 2,000 cc, both diesel and gasoline, taking into account the age of the vehicle, the new level of the proposed fixed tax on fuel and the new coefficients of years of use.
According to estimates, the annual tax liability for diesel cars up to 2,000 cc will increase by 71% to 175%, depending on the age of the vehicle. For gasoline cars, the annual vehicle tax liability will also increase by 71% to 175%, depending on the age.
The highest increase in the tax will be for cars over 10 years old. According to calculations, an owner who owns a car that is 10 years old or manufactured in 2016, with a volume of up to 2,000 cc, with diesel currently pays an annual tax of 6,000 lek.
After January 1, 2027, according to the calculations with the proposed changes in the draft law "On National Taxes", in the fiscal package, the obligation for the owner of this vehicle will reach the value of 16,500 lek or 10,500 lek more than what he pays. The obligation will increase by 175%. This is the highest increase according to the age of the cars.
For example, for a 16-year-old gasoline vehicle, the annual tax liability is currently calculated at 9,600 lek per year. After the changes come into effect, the liability for this vehicle will reach 19,200 lek or 9,600 lek more. The liability will double.
How is the current annual car tax liability calculated?
According to the legislation in force, the annual vehicle tax is calculated by multiplying the vehicle's cylinder capacity by the coefficient according to the age of use and the fixed tax according to the type of fuel.
Currently, the fixed tax for diesel is 12.5 lek and for gasoline 10 lek. These levels were set in 2013.
While the coefficient of years of use starts from level 0 for new vehicles (1 to 3 years old) to 0.78 for vehicles 30 years old. The level of coefficients of years of use is the same for both types of vehicles, both for diesel and gasoline of the first category with a volume of up to 2 thousand cc.
How will the new annual vehicle tax liability be calculated?
Following the proposed changes to the law "On National Taxes", where the circulation tax of 27 lek per liter on fuel will be moved to annual vehicle taxes, an increase in the fixed tax has been proposed, both for diesel and gasoline. Both of these taxes are part of the formula for calculating the duty.
For the first category, which includes vehicles with a volume of up to 2 thousand cc, the fixed tax for diesel from 12.5 lek is proposed to be 25 lek. The fixed tax for gasoline from 10 lek, which is currently at 20 lek.
There will also be an increase in the coefficients for years of use. For both diesel and gasoline cars up to 2,000 cylinders, the coefficient ranges from 0.15 for cars up to 0.82 for cars over 30 years old.
The highest growth
The changes will impose higher obligations on older cars, over 10 years old.
The owner of a 25-year-old diesel car currently pays an annual tax of 19,500. After the changes, he will pay a tax of 33,500. The tax increases by 14 thousand lek or 72% more.
For 30-year-old cars, the annual tax liability will double. A vehicle owner will pay 41,000 lek from the 19,500 lek currently paid after the changes come into force. The liability in value increases by 21,500 lek or 110% more. 
