Czech Government to increase taxes on Tobacco and Alcohol

New tax package

přidal Martin Kotas | 04. 11. 2019

New tax package was pushed, which will increase the price of Tobacco, alkohol (hard) and gambling. The approval of the new tax package was without objection in the Lower house. Lot of opposition parties did their best to amend draft laws. In the end of the ruling coalition of Prime Minister Babiš used their majority in the lower house to force and vote on the bill. It will be efective by 1.1.2020. The bill, which should bring a ten percent consumer tax hike on tobacco and hard liquor was supported by 96 deputies from ANO, ČSSD and Communist Party. Finance Ministry expected to add 10 billion crowns to revenue. The bill, which still needs a nod from parliament, is aimed at keeping the central budget deficit at this year’s 40 billion crowns. The tax package also included a change in the way the government will assess reserves of insurers. The Czech economy has slowed but is still expected to grow 2.2% next year.

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