N. Macedonia planning to raise VAT on electricity to 10%

The government cut the VAT rate to 5% in response to the energy crisis last year but new estimates show that there is room to increase it to 10% without affecting the cost of electricity for households and small industrial consumers, Bektesi said during a talk show on local news channel Televizija 24 on Monday.

Bektesi also said that that there will be no increase in the price of thermal energy, adding that almost all of the country's electricity production facilities are now in operation.

In order to lower power prices for households, the government cut the VAT rate on electricity from 18% to 5% in 2021 with the intention of raising it to 10% from July 1, 2022.

North Macedonia's gross electricity production increased by an annual 4.1% to 484,239 MWh in September, according to latest data available from the country's statistical office.