Used car prices increase as new changes come into force

TIRANA, August 16 – Used car prices have registered an increase of 5 to 20 percent during the past three weeks following the entry into force of a new tax imposed on their resale within the country.
The tax is based on the car’s engine’s horsepower, years of usage from the moment the customs duty has been paid, and the kind of fuel it uses.
The new tax will be calculated by multiplying the car’s cylinder, with a fixed coefficient of 0.5 for each year of use and a fixed tariff of 25 Lek for diesel and 20 lek for petrol.
In this way, the owner of a car with an engine of 2000 cc imported in 1998 will have to pay a customs duty of 300,000 lek (3,000 USD) if selling the car, but only 50,000 lek (500 USD) if the car has had its customs import tax paid in 2008.
The changes to the national tax system are aimed at discouraging use of old cars in Albania and meet the Stabilization and Association Agreement (SAA) commitment of removing fixed-rate taxes for imported used cars from EU member countries.
Meanwhile, some new changes increasing the excise taxes on low quality fuels used for heavy industry, agriculture and greenhouse heating have also entered into force.
Virgin oil, previously excise-free, will be taxed at 70 Lek per litre. The excise tax for the kerosene will be 20 Lek per litre.
Increases are also expected for poor quality diesel, heavy oils and residual oil whose excise taxes will each be 37 Lek per litre, the same as petrol and D1, D2 diesel. Their previous excise tax rate is 13 Lek per litre.
The increase will also affect cyclic and acyclic hydrocarbons including ethylene and benzene whose excise tax rate will be at a 37 Lek per litre from 13 Lek.
The bill has also imposed excise tax increases even for plastic raw materials used by export and construction industries.
Cardboard, glass, car batteries, fireworks and bulbs have also been included in the excise tax scheme.