However, the measure would also apply to passenger cars. On the website Lidovky.cz this was stated by the Minister of Industry, Trade and Transport Karel Havlíček (for YES). More than two million diesel cars drive in the Czech Republic.
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In the current situation, a reduction in the koruna tax would reduce revenues to the state budget by approximately 4.7 billion crowns.
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Currently, diesel is sold on average in the Czech Republic for 27.23 crowns and is fifty cheaper than a liter of gasoline. However, the exact form of the adjustment is not yet certain. In an interview with Lidové noviny, Havlíček admitted a reduction of a maximum of 20 percent from the current 10.95 crowns per liter, which would reduce the price of diesel by two crowns per liter.
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However, the option is to reduce the tax by ten percent, ie by a crown per liter of diesel. Negotiations on the tax adjustment were also confirmed by the Ministry of Finance; the ministry could submit it to parliament in the autumn. Last year, the state collected 64 billion crowns in excise duty on diesel. A reduction in the koruna tax would, at the current level of refueling, reduce the state’s revenues by approximately 4.7 billion crowns.
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The tax reduction should be widespread for both trucks and cars. However, the measure would help truck hauliers in particular, the vast majority of whom use diesel cars. At the same time, they consume most of the domestic diesel consumption. In the long run, international orders, in particular, have been declining, which is gradually being taken over by cheaper competition from the East.
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“The transport of goods in the Czech Republic in 2015 was at the level of 63 million tons and today 29 million and more is declining. One of the reasons is the excise tax, which greatly handicaps us, especially in comparison with Poland. There, the price of diesel is 20 percent cheaper. And that is what is destroying our trucks today, “said Havlíček.
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Diesel currently accounts for about a third of carriers’ total costs. Therefore, they support a tax reduction of a fifth, which, according to them, would equal the price of diesel in the Czech Republic compared to Poland.
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