Minoski: reduced VAT rate and subsidies to stimulate eco-friendly heating with pellets

Ohrid, 5th December 2016 (MIA) – Use of energy sources that do not pollute the environment is the future of heating in Macedonia. This ecological aspect, i.e. reduction of pollution in many cities, has been the reason for the measure we are being implementing, aimed at stimulating products that contribute to raising the environmental awareness and increased use of ecologically clean energy sources, such as pellets.

This was pointed out by Minister of Finance, Kiril Minoski, at today’s visit to “EcoSpar” company, manufacturing pellet boilers and selling most of its final products on the markets abroad.

- Reducing the 18% VAT rate to 5% VAT rate for pellets and stoves using this energy source contributes to increased consumption of these two products, aimed at achieving the goals we, as a Government, have set, Minoski said.

In addition to tax relieves, he also mentioned the measures for subsidizing pellet stoves.

- In addition to reducing the pollution, pellet stoves also have higher level of utilization of the released energy. We believe such measures and the incentives offered by “Macedonian Forests” to the end of building facilities for processing part of the waste into pellets will complete this system on one hand, thus stimulating the pellet heating on the other, Minoski stated.

Jovan Jovanovski, “EcoSpar” Director, pointed out that reduction of VAT rate for their products encouraged the sale of their boilers in the Republic of Macedonia, at the same time expressing the expectation that subsidies would additionally boost the demand on the market of pellet boilers.

Measures the Government plans to introduce, aimed at encouraging the use of pellet boilers, envisage for the state to participate with 50% in the retail price of such eco-friendly heating boilers.