The circulation tax is removed from fuel pumps and transferred to annual vehicle taxes. From January 2027, drivers are expected to face a new payment scheme that provides for increased rates depending on engine power, vehicle age and fuel type. The changes are part of the draft law on “National Taxes”, included in the 2027 fiscal package. Currently, the circulation tax is paid through fuel, at 27 lekë per litre, or 32.4 lekë including VAT. Under the proposed scheme, this tax would be paid once a year, through obligations linked to the vehicle.
The diesel and petrol tax doubles in the annual calculation
The draft law provides for doubling the fixed fuel rate used to calculate the annual vehicle tax. For vehicles with engine capacity up to 2,000 cc, the proposed rate is 25 lekë for diesel, 20 lekë for petrol and 20 lekë for gas. For vehicles with engines over 2,000 cc, the fixed rate will be 26 lekë for diesel, 21 lekë for petrol and 21 lekë for gas. The same rates of 25 lekë for diesel and 20 lekë for petrol and gas are also foreseen for buses.
A 2017 car will pay over 10,000 lekë per year
The effect of the change is clearly visible in the example of a diesel car, manufactured in 2017, with a 1,900 cc engine. Currently, this car pays 5,423 lekë in annual tax. Under the new formula, the obligation is expected to reach 10,925 lekë per year. This represents an increase of 5,502 lekë, or about 101.4% more than the current payment.
Electric vehicles and luxury cars with new rates
The changes also affect electric vehicles and those considered luxury. According to the draft law, a fixed tax of 15,000 lekë per year is proposed for electric cars, while the rate for electric motorcycles will be 10,000 lekë per year. For luxury vehicles, the annual tax is expected to rise from 21,000 lekë to 40,000 lekë. This category includes cars with up to 6+1 seats that meet at least one of two conditions: engine capacity equal to or greater than 3,000 cm³, or a value above 5 million lekë.
Revenue from vehicle taxes is projected to increase significantly
Although the circulation tax will be removed from the fuel price under the proposed scheme, the changes to annual taxes are expected to increase state budget revenue. According to the data presented in the draft law, revenue is projected to reach 33.8 billion lekë, compared with about 7.2 billion lekë expected to be collected during 2026. Thus, projected revenue would be about 3.7 times higher. The changes are still part of the draft law of the 2027 fiscal package, and the proposed rates should be distinguished from the obligations currently in force.