Another financial burden is being planned for drivers in Albania. According to the new draft law on national taxes, from January 2027 the annual vehicle tax is expected to increase significantly, with a heavier impact on diesel cars, higher-displacement engines and older vehicles.
The government shifts the burden from the fuel pump to the annual payment
According to the draft law, the main change is the removal of the circulation tax from diesel and its transfer to the annual vehicle tax. In practice, the fiscal burden is not being removed, but reorganized into a payment that will be calculated every year.
The new formula provides for the tax to be based on the age of the vehicle, engine power and fuel type. In the proposed version, diesel vehicles would pay more than petrol or gas-powered vehicles.
New rates: increases for diesel, petrol and gas
Currently, the fixed fuel-based tax in annual payments is 12.5 lek for diesel and 10 lek for petrol. Under the new scheme, for vehicles up to 2,000 cc, 25 lek is proposed for diesel, 20 lek for petrol and 20 lek for gas.
For vehicles above 2,000 cc, the fixed rate by fuel type rises to 26 lek for diesel, 21 lek for petrol and 21 lek for gas. Buses are also set to face 25 lek for diesel, 20 lek for petrol and 20 lek for gas.
The example that shows the effect: 100% more for a 2016 car
The effect of the change becomes clearer in the example given in the draft. A passenger car from 2016, with a 1,600 cc diesel engine and an age coefficient of 0.24, which today pays 4,800 lek in annual tax, would from January 2027 pay 9,600 lek.
This means a 100% increase in the vehicle tax alone. Insurance and technical inspection, under the presented scheme, remain separate payments.
Electric cars, luxury vehicles and trailers also affected
The draft law also provides for a fixed payment of 15,000 lek per year for electric cars and 1,000 lek for electric motorcycles. For vehicles classified as luxury, the special annual tax is proposed to rise from 21,000 to 40,000 lek.
The scheme also includes trailers and semi-trailers. For vehicles weighing up to 50 tonnes, a tax of 1 lek per kilogram is proposed, while for those above this limit the payment is set at 60,000 lek per year.
More than 1.1 million vehicles in circulation and a new tax also for foreigners
According to INSTAT data, the number of vehicles in circulation in Albania has exceeded 1.1 million, with more than one third concentrated in Tirana. Within one year, the fleet has grown by 8.7%, making the impact of this package even broader for families and businesses.
According to the presented version, the government is also considering another tax for foreign vehicles, which would be applied at customs. It remains to be seen how this addition will be justified and what real effect it will have on the cost of circulation.
In essence, the new scheme does not bring relief for vehicle users, but a redistribution and increase of the bill, especially for those who use older diesel cars.
If the draft law is approved under these terms, January 2027 will mark a significant increase in the annual cost for a large share of drivers in the country.