SDSM proposes cutting fuel VAT to 5% and halving excise duties
Opposition asks to lower VAT on fuels to 5% and cut excise duties by half to ease price pressure on households.
SDSM has proposed an emergency package to reduce the cost of motor fuels: cut value-added tax (VAT) on fuels from 18% to 5% and slash excise duties by 50%, the opposition said after a fresh round of price increases at the pumps.
Opposition says measures would lower prices across the economy
At a press briefing SDSM argued the two changes would immediately reduce prices not only at petrol stations but across the consumer basket and the overall price level, helping households feeling the squeeze from rising costs.
Natasha Popović, a member of SDSM’s Executive Board, warned of an acute impact on living standards: "Fuel prices are through the roof, and since yesterday diesel is over 100 denars per litre. In just six months the price of diesel rose by 43 percent. This is a new blow to citizens' living standards, but the Mickoski government is doing nothing. There is no reduction of VAT. There is no reduction of the excise. There are no measures to protect living standards," she said at the party's press conference.
The SDSM statement followed Prime Minister Hristijan Mickoski’s remarks yesterday on the rise in oil product prices, when he said the government has a clear plan and strategy but did not specify when or what concrete steps would be taken.
SDSM warned the cost shock at the pumps spreads through the economy: higher transport costs raise production prices, farmers face increased expenses and food prices may climb further.
"Half of the family budget of Macedonian citizens already goes to food and beverages, the consumer basket is almost 70,000 denars, and wages are stagnant. Every new denar for bread, milk, vegetables and fruit hits the family table directly. Living standards are falling, and the Government is doing nothing," the party said.
According to the latest decision by the Energy Regulatory Commission (RKE), a litre of Euro-super B5-95 is sold for 93 denars, Euro-super B5-98 costs 95 denars per litre, and diesel is sold at 101.5 denars per litre.
SDSM urged the authorities to adopt the VAT and excise cuts immediately, saying prompt intervention is necessary to ease inflationary pressure on households and the wider economy.
Photo: press material from the event
