Windfall tax to be retro-active for 2022

The windfall tax that the Czech government wants to levy on companies in the energy and banking sectors will be retroactive for 2022, Deputy Prime Minister Marian Jurečka told reporters on Wednesday citing an agreement reached by the governing parties.  The tax on companies in the energy, banking, petroleum and fossil fuel industries was originally meant to apply from January 2023 to the end of 2025. 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.