Czech state collected around 60 billion crowns from windfall tax and levy on excess revenues

The state collected around 60 billion crowns last year from extraordinary measures introduced in response to high energy prices. Of this, 39.1 billion crowns came from the tax on unexpected profits (the so-called windfall tax), while 18.5 billion crowns went to the state budget from the levy on excess revenues from electricity generation. The Ministry of Finance reported this today. The ministry had initially expected total proceeds from both measures to reach 100 billion crowns, but lowered its estimate to 64.5 billion crowns in its August revenue forecast in view of energy price developments.

The state imposed the windfall tax on energy, petrochemical and mining companies, as well as large banks. It justified the measure by citing their unexpected revenues resulting from the sharp rise in energy prices and, in the case of banks, the significant increase in interest rates. Energy producers also pay a levy on revenues from electricity sold at prices above thresholds set by the government for each energy source.

Proceeds from the extraordinary measures helped cover the costs associated with price caps that the government set last year on electricity and gas prices in response to their sharp rise.