Reducing the influx of customs duties, but an increase in allocated capital investment assets

Customs reduction for 67 products used in the domestic industry and abolishing customs rates for goods coming from the United States

In parallel with the relaxation of the Customs Regime (US and EU) and the planning reduction of many customs duties, but with certain operations in the budget management, ie expected investments in the energy sector, projections are made for realistic results in the field for greater economic growth…

The funds arriving in the state treasury on the basis of customs duties will be underway in the following period. This is the result of a decision to abolish customs duties to the United States, as our official position built after US President Donald Trump’s set measures, but also because of the planned customs adjustments to those of the European Union.
As announced by Finance Minister Gordana Dimitrievska -Kochoska, the Macedonian government plans to reduce customs duties by 67 products used in the domestic industry, but also to abolish customs rates for goods coming from the United States.

These decisions, which are important for the further development of the Macedonian economy and cooperation with foreign companies, will at the same time mean a big reduction in the inflows in the budget.

Minister Kocoska: Annual Fiscal Implications would be four million euros

Approximately, with the introduction of all planned tax exemptions, budget rates will be reduced by almost five million euros or more precisely by 4.7 million euros.
-For the 67 products the fiscal effect is two million euros on an annual basis for these 50 percent. When the next 50 percent come into force, when we comply with the EU fully, based on import data from 2024, the annual fiscal implications would be four million euros – explained Dimitrijeska Kochoska.

Then it added that this amount should also take into account the fiscal implications for exemption from customs duties and imports from the United States.
– It is about 3.7 million euros on an annual basis. There are no changes here, so they would lose, which means that we would lose one million euros this year from reducing customs duties on 67 products, given that they will apply from July 1 (it is two million euros annually), plus these 3.7 million euros, for this year the fiscal effects will be 4.7m euros-Dimitrioska said.

Customs decreases from 20 % to 15 percent, then 10 percent

The proposal to reduce the customs rate at 67 goods has already been sent for adoption in Parliament in order to start the lower customs rates from the beginning of next month. These are goods that are used as raw materials or raw materials in our industrial capacities, especially in the car sectors, metal processing industry, metallurgy and energy, ie separate products needed for the production of high -ranking products in order to increase the export of domestic industry.

The changes are reducing customs rates by 50 % of the difference between our customs rates and those of the EU. For example, if the customs rate of certain goods in our country is 20 %, and in the EU is 10 %, with the current changes the rate is reduced to 15 %, with a tendency for future compliance.
-At the same time as the changes we are approaching complete harmonization with the customs rate applied to the EU for lithium-ion batteries for electricity storage in the Energy sector. Since July 1, the customs rate for them is reduced to 2.7 percent, which directly helps the energy sector. This is because the batteries become a key element in energy balancing, system services as well as planning a lecture into a network of energy from renewable energy sources in order to maintain system stability, as well as insurance of the feasibility of renewable projects – explained Dimitrieska -Kochoska.

She informs that the changes that are proposed are in order to increase the competitiveness of domestic companies exporting to foreign markets and to increase Macedonian exports, as well as to provide increased foreign exchange influx. In doing so, such measures, which lead to reduction in companies’ costs, as he said, will have effects on increasing investment and the number of employees, which is the priority of the Government, in order to achieve higher rates of economic growth.
-The amendments to the Customs Tariff Law have been made in consultation with the chambers of commerce and is part of our commitment to keeping an inclusive and partnership with the business community, in order to create a better business environment. It is a continuation of the conduct of the customs policy of reducing the customs rates of the most priority raw materials and raw materials used in the manufacturing industry. This amendment realizes the 2024-2028 Government’s work program in the part where the Government has committed itself to the gradual harmonization of customs rates at the rates applied in the European Union adapted to the export-import needs of the economy and the state. They are also supplementing all the measures and policies we take to support the domestic economy through investments in the public and private sectors for achieving higher growth rates and securing a higher standard of living – the Minister of Finance said.

In order to greater economic cooperation with the strategic partner

Then it added that the complete liberalization of imports of US -originating goods, ie the abolition of customs rates for the goods coming to our country from the United States, is in this direction.
– The United States is strategic partners of our country and cooperation with them is important in every aspect, which is why the government is prepared to expand and deepen the close partnership between the two countries, which is based on common goals, interests and values ​​and to establish a lasting cooperation based on mutual interest. This Government’s priority is to create policies that will create a favorable and predictable business environment for all companies, including for domestic and foreign companies and thus build a strong economy-emphasized Dimitrievska-Kochoska.

The decision was partially imposed because of the introduction of high customs duties by the United States to Macedonia. Namely, as a reminder, our country is on the list of US President Donald Trump, which were a number of countries that are introduced higher customs, and for Macedonia specifically they reached 33 percent, unlike Kosovo and Albania, which remained low customs.

The Macedonian government announced after the announcement that it would talk to the US Administration to correct such a decision. Foreign Minister and Foreign Trade Minister Timco Mucunski recently had a bilateral meeting with US Secretary of State Marko Rubio in Washington, which discussed the possibilities for further deepening trade relations, and the possibility of reducing tariffs and starting a signing process.

Prime Minister Hristijan Mickoski said he was optimistic that such meetings would bear fruit.
« My expectations are positive as a result of meeting with Mr. Jamison Greer, but also my phone conversations I had with Secretary of State for Economy, Mr. Howard Latvo, so I expect to be, also among the first countries in the world to receive such a deal with the United States, » Mickoski said. ER