Finance minister says windfall tax will not be retroactive

Finance Minister Zbynek Stanjura has refuted an earlier claim that the windfall tax the Czech government wants to levy on companies in the energy and banking sectors would be retroactive for 2022. Following Wednesday’s cabinet meeting, Mr. Stanjura said the tax on companies in the energy, banking, petroleum and fossil fuel industries would apply from January 2023 to the end of 2025 as  planned. The ministry is planning a tax rate of 60 percent on the excess profits of these companies. The special tax is expected to generate CZK 85 billion for the budget in 2023. Another CZK 15 billion is expected to be raised next year by European price caps for energy producers, as proposed by the European Commission.