Czech ODS: Windfall tax on refineries will raise fuel prices, people will pay

By introducing sectoral taxes, the government is creating an unpredictable environment for future investment and further economic development, damaging the country's image as a well-functioning state, according to the opposition Civic Democrats. ODS chairman Martin Kupka said this today at a press conference ahead of the Chamber of Deputies' debate on introducing a windfall tax on refineries. He said people would ultimately pay for the tax increase through rising prices. The Pirates do not generally oppose taxing extraordinary profits during a crisis, but they object to the proposed form of the tax, according to MP Vendula Svobodová. Like Kupka and, later, representatives of the Mayors and Independents, she noted that the tax applies to just one company and could jeopardise potential further investment in Czech industry.

"A similar situation applies to coal-fired power producers," Svobodová said.

The Pirates therefore propose extending the legislation to cover these producers and lowering the rate to 25 percent from 50. "We want the money raised not to disappear into the state budget, but to be used for capacity payments to power plants, a tool for ensuring stable electricity supplies in the future. Otherwise, citizens will once again pay these costs through their electricity bills," she said.

The Mayors and Independents also do not rule out the possibility of extraordinary taxes to compensate for the excessive costs faced by households and businesses. But they say it is not possible to tax everyone who happens to be doing well. STAN MP Jan Papajanovský presented to journalists the amendments the Mayors will submit. They propose that the tax should also apply to foreign refineries that import fuel into Czechia, and that it should be calculated using data covering a longer period. The Mayors will also call on the government to seek a European solution to the problem. STAN MPs will vote on the bill depending on whether they succeed in securing these changes. The government can nevertheless pass the proposal thanks to its majority in the Chamber of Deputies, even without opposition support.