Albania to Scrap Fuel Circulation Tax at the Pump, but Car Owners Will Face a New Vehicle Tax

TIRANA, Albania — The Albanian government plans to remove the circulation tax from the price of diesel and petrol, but the measure does not mean the tax will be abolished. Instead, the financial burden will be shifted from fuel purchases directly to vehicle owners.

 

Under the new scheme presented after a government meeting, the circulation tax, currently set at 27 lek per litre before VAT — equivalent to 32.4 lek per litre including the 20% VAT — will no longer be collected when motorists refuel their vehicles. Instead, it will become a direct obligation linked to vehicle ownership and will be collected through the relevant transport services directorate.

Alongside this change, the prime minister announced the introduction of a new fiscal entry fee for all foreign-registered vehicles entering the territory of the Republic of Albania.

The circulation tax on fuel dates back to 2011, when it was introduced at just 5 lek per litre. It was subsequently increased in stages until 2015, when it reached its current level of 27 lek per litre.

However, during the announcement of the reform, the prime minister did not provide key details about how the new vehicle tax will be calculated, how much owners will have to pay, or how the new entry fee for foreign-registered vehicles will be determined.

The central question for motorists remains whether the reform will actually reduce the cost of driving or simply change the way the government collects the money.

Until the government publishes the new rates and calculation criteria, the financial impact on Albanian motorists and foreign visitors remains unclear.