On 1 January 2008 the profit tax and the personal income tax further declined to 10%. Last year in January the Government introduced the flat tax rate, cutting the personal income tax from 24%, 18% and 15% and the profit tax from 15% to 12%.

Despite these tax cuts, statistics reveal that tax revenues in 2007 hit all-time highs since Macedonia's independence.

In end November 2007 the personal income tax collection stood at 104.71%, the profit tax collection at 125.83% and the VAT tax collection at 128.91 % compared with the same month of 2006.

In general, tax collection in the eleven months of 2007 went up by 21% from the same period of 2006.