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The Senate passed a tax on excess profits. It will be valid for three years.

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The Sete passed a tax on excess profits. It will be valid for three years.

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Income from the Extraordiry Income Tax is intended to cover the extraordiry costs that the government will incur in connection with the setting of maximum energy prices. It will be paid for a period of three years from next year until 2025. His rate will be 60 percent.

The income from the tax will be the exclusive income of the state budget, and the state will not share it with the regions and municipalities. Considering that the Sete approved the law, the setors did not vote on the proposals of their colleagues Mikhail Kanov (STAN) and Vladislav Vilimets (ODS) that part of the state budget revenues be distributed among regions and municipalities in accordance with the budget distribution of taxes. The Union of Cities and Municipalities of the Czech Republic also begged the setors for a revenue sharing. The majority of the House of Representatives did not approve this proposal.

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TC after government meeting

Fince Minister Zbynek Staniura (ODS) disagreed with the revenue sharing. He argued that the state would bear 100 percent of the cost of offsetting energy prices, so he needed extraordiry revenues to do so. He also noted that emergency spending would benefit local governments and their organizations, since the state would set maximum electricity prices in their favor.

Setor Kanov wanted distributions according to the shares established in the law on the budgetary determition of taxes. Setor Vilimets proposed that regions and municipalities receive 20 percent of what would otherwise belong to them under the Budgetary Taxation Act. “I am convinced that this is the right thing to do,” he said.

For example, Sete President Milos Vystrcil (ODS) opposed the division of tax revenues. According to him, the division with local governments is wrong and unfair, neither in relation to the state, nor in relation to citizens, nor in relation to other institutions that cannot have the right to vote in money. “Compensation from the consumer side and compensation from the producer side will be paid by the state and not by municipalities or regions,” said Zdeněk Nytra, chairman of the ODS and TOP 09 setorial club.

Source: E15

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