Windfall tax to continue as Czech government faces budget shortfall

The Czech government will extend the windfall tax on energy companies and large banks into 2024, as the state faces a 35 billion crown deficit due to the energy crisis. Finance Minister Zbyněk Stanjura from the Civic Democratic Party confirmed the tax’s continuation, citing insufficient extraordinary revenues to cover the state’s crisis-related expenses. While most coalition parties support the tax, there is debate over additional sectoral taxes. Minor shareholders of ČEZ energy company, heavily impacted by the tax, are considering legal action, arguing that the state is unfairly burdening the company to meet budget needs.