Consolidation package: excise, energy and other taxes

Tereza Kopřivová, Daniela Tinková
In connection with the consolidation of public budgets (consolidation package) which was approved on 8 November 2023 by the members of the Senate we will focus on excise and other taxes.

Changes in excise and energy taxes

The amendment introduces 10 % increase in tobacco tax – cigarettes, cigars, smoking tobacco and cigarillos and in next years (2025-2027) this tax will increase by 5 % per year. Heated tobbaco tax will increase by 15 % per year (during the years 2024-2027). Newly the fill into electronic cigars, nicotine pouches and other nicotine products (e.g. chewing tobacco, pipe tobbaco) will be taxed as well.

The alcohol tax will incease also – similarly as tobacco tax – in every of next two years (2024-2025) by 10 % and in 2026 by 5 %.

In the case of excise duty on mineral oils, the exemption for aviation fuel for domestic transport is abolished, while the refund on mineral oils used for metallurgical or mineralogical processes is abolished.

In the area of energy taxes, exemptions for electricity, gas and solid fuels are abolished.

Real estate tax

The real estate tax is increased to 1.8 times. An inflation coefficient is also introduced, which will increase the tax annually by inflation.

Gambling tax

The existing rate of 35% is maintained for lotteries and technical games. For other games of chance, the tax rate is increased from 23% to 30%. The existing minimum tax on gaming machines of CZK 9 200 is increased to CZK 13 400.

Tax advisory

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Jiri Sindelar
Jiří Šindelář
Tax Director