Chamber of deputies temporarily reduces excise duty on diesel oil and petrol
To mitigate the effects of the energy crisis on fuel prices, the government has proposed an amendment to the Excise Duty Act, whereby the excise duties on diesel oil and unleaded petrol are to be temporarily reduced by CZK 1.50 per litre from 1 June to 30 September 2022. The excise duty on a litre of petrol would thus fall from CZK 12.84 to CZK 11.34, and for diesel oil from CZK 9.95 to CZK 8.45.
Given that excise duty also enters into the calculation of VAT on fuel, this should mean a reduction in prices at fuel stations by up to CZK 1.80 per litre. The Ministry of Finance plans to monitor the prices fuel distributors (excise duty payers) charge to make sure that the reduced tax is reflected in the final prices for drivers.
The reduction in excise duties shall only apply to petrol and diesel oil released into free tax circulation in the period from 1 June to 30 September 2022; it shall not apply to mineral oils that, although produced during that period, are not released into free circulation during that time.
Also, some refunds of excise duties on diesel oil consumed in primary agricultural production (‘green diesel’) have been temporarily reduced, based on the EU minimum rates stipulated by the Energy Taxation Directive. The amount of the refund is to be temporarily reduced from CZK 8.50 to CZK 7.30 per litre.
The amendment is being debated in a fast-track legislative process: the chamber of deputies approved it on Tuesday, 26 April, and once confirmed by the senate, it could enter into force on 1 June 2022.