Chamber of Deputies approves temporary VAT cut on petrol and diesel

The Chamber of Deputies has approved a temporary reduction of the excise tax on fuels by CZK 1.50 per liter from June until the end of September, to combat rising consumer prices and inflation. The Finance Ministry said that prices at petrol stations could fall by up to CZK 1.80 per liter thanks to the reduction in excise duty. The draft bill will now be submitted to the Senate.

Some economists have criticized the move saying that it will only increase demand for petrol at a very high cost.

Earlier this year the government decided to abolish the mandatory blending of bio-components into fuels and to scrap the road tax on vehicles weighing up to 12 tons.