A bitter surprise is coming / Car tax doubles, electric cars will be taxed at 165 euros per year

2026-10-29 11:38:00 / EKONOMI&SOCIALE ALFA PRESS

A bitter surprise is coming / Car tax doubled, set for electric cars

After the good news about the abolition of the circulation tax, a bitter surprise has come. The government will double the annual tax that citizens pay for their vehicles by doubling the fuel fee in the formula that determines this tax.

How does the formula change for diesel and gasoline cars?
To replace the money the state loses from the removal of the circulation tax at the pump, the "fixed tax" within the annual calculation formula increases significantly:
• For engines up to 2,000 cm³: The fixed tax becomes 25 lek for diesel (it was 12.5) and 20 lek for gasoline/gas (it was 10).
• For engines over 2,000 cm³: The fee is set at 26 lek for diesel and 21 lek for gasoline or gas.
• New cars (0-3 years): The tax base is expanded, including new vehicles that were currently exempt from this tax.

How much is the tax for a 10-year-old car with a cubic capacity under 2000 cm3?
Currently, vehicles are taxed according to a formula based on age, fuel type and cylinder capacity (Annual Tax = Cylinder Capacity (cm³) x Age Coefficient x Fixed Fuel Tax)

For diesel cars, the fixed fuel fee is 12.5 lek, while for gasoline cars this fee is 10 lek. Consequently, a 10-year-old car with diesel currently pays 1,968 x 0.24 x 12.5 = 5,904 lek in tax per year.

But from January 1st this tax will become: 1,968 x 0.24 x 25 = 11,808 lek per year. 

Conclusion: For a 10-year-old car with a 2.0 diesel engine, the citizen will pay exactly 5,904 lek more per year for the annual tax (from about 5.9 thousand lek to about 11.8 thousand lek).

How much is the tax for a 10-year-old car with a cubic capacity of over 2,000 cm3?
For a vehicle with 2.9 cylinders (2,900 cm³) and 10 years old (where the age coefficient is 0.24), the calculation increases significantly because this vehicle falls into the category with a cubic capacity of over 2,000 cm³.

According to the new ratio, for engines over 2,000 cm³, the fixed fuel tax in the formula becomes 26 lekë for diesel (it was 12.5 lekë) or 21 lekë for gasoline (it was 10 lekë).
Here is the exact calculation in a copyable version for diesel engines:

According to the current scheme, the tax (is):
2,900 x 0.24 x 12.5 = 8,700 lek

According to the new scheme, the tax (is):
2,900 x 0.24 x 26 = 18,096 lekë
Difference: The citizen will pay 9,396 lekë more per year for the annual tax of this vehicle (from 8.7 thousand lekë to about 18.1 thousand lekë).

A bitter surprise is coming / Car tax doubled, set for electric cars

The blow to electric and luxury cars
Until now, electric cars were promoted as exempt from duties, but with the new formula they will face a fixed annual tax of 15,000 lek (and 1,000 lek for electric motorcycles).

Meanwhile, for luxury vehicles, the additional annual tax almost doubles, increasing from the current 21,000 lek to 40,000 lek per year.


Tax also for Trailers
To include all road users in the maintenance of the infrastructure, the state has also imposed taxes on and carrying vehicles. Trailers and Semi-Trailers: Will be taxed at 1 lek for each kilogram of weight (for those up to 50,000 kg) and at a fixed fee of 60,000 lek per year for those over 50,000 kg.

Total effect
According to the official documentation of the Ministry of Finance, the total effect of this new draft law on national taxes is expected to be minus 5 billion lek (net negative effect on the state budget).
This final balance is calculated from two major movements:

• Loss from fuel (Minus 31.2 billion lekë): The abolition of the circulation tax of 27 lekë/liter removes from the budget about 26 billion lekë from the tax itself and about 5.2 billion lekë from the VAT that was applied on it.

• Profit from new car taxes (Plus 26.6 billion lekë): The change in the annual formula, tax on electric cars, trailers and doubling the tax on luxury cars is expected to bring in about 33.8 billion lekë per year, up from 7.2 billion lekë that the old scheme brought in.

The difference between the loss from oil and the profit from assets creates this net deficit of 5 billion lek, which will be compensated by other policies of the Fiscal Package (such as increasing the VAT rate to 21% or the dividend tax to 15%).

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