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Distillers, tap companies and restaurants are protesting against the announced changes. According to them, these lead to the growth of the black market, reduced employment in these industries, and demand for cheaper and lower quality alternatives from abroad.

In its consolidated package, the government first proposes an increase in consumption tax on cigarettes, including a tax on smoked cigarettes, and a new tax on electronic cigarettes. According to the proposal, the consumption tax would increase by 10 percent for five years and by 5 percent each in 2025 and 2027. The consumption tax is 15 percent for five years and is expected to grow by the same amount until 2027.

A spokeswoman for JTI International, which manufactures Camel and Winston cigarettes in the Czech Republic, believes that the announced changes will increase prices by an average of at least eight to nine crowns per pack of cigarettes and ten or three crowns per pack. . According to him, the final price depends on individual manufacturers.

A pint of spirits is about 10 crowns more expensive

The government decided to include alcohol in the tax reform. According to the full government, the consumption tax on ethanol will rise by approximately 32 crowns per liter of ethanol for the next five years, a ten percent increase from the current rate of K322.50 per liter. In the following years and until 2028, it should grow by five percent annually.

According to the government’s plans, consumption tax on spirits should increase by 1.1 billion over the next five to five years, but according to distilleries, this is a step in the right direction. In the past, whenever a consumption tax on spirits was introduced, it brought with it the long-held dream of total collection in the coming years, replies R Vladimir Darebnk, executive editor of the Union of Spirits Producers and Importers.

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He points out that this would lead to the development of a black market and dramatically dry up the industry as a whole. R We estimate that half of the five hundred baby diapers in the country would go out of business. The same volumes will undoubtedly lead to smaller craft distilleries. It’s a slap in the face to an honest manufacturer, he added.

Other companies in the industry don’t like it either. Alcohol merchant Rudolf Jelnek from Vizovice in Zlnsko attributed the move to his lack of competitiveness. According to representatives of this company, the increased tax will also affect the price of the product. According to the company’s business-marketing editor Miroslav Motyka, a half-liter bottle of spirits from the company’s production will save at least ten crowns due to the tax imposed from the fifth year.

Not forgetting the beer

The government proposal would increase VAT on aged beer to 21 per cent from the current ten. So if a pint of beer in a pub is 57 crowns this year, it will be seven crowns more after value added tax. The changes will mainly affect businesses in small towns and villages, said Martina Ferenkov, executive editor of the Czech Association of Breweries and Malthouses.

We regret that the government has decided to go the route of giving you pubs and restaurants instead of all the controversy. Let’s agree that this move will lead to a further exodus of guests, I think Ferenkov.

Tich vno se ubrnilo

In contrast, these widows escaped the consumption tax. According to Prime Minister Petr Fiala (ODS), when deciding on a given tax argument, such a tax is not used in surrounding countries. However, there is nothing in dispute about the legal recognition of a silent marriage as a gift of representation.

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Conglomerate Vinask has decided to keep consumption tax on the private sector at zero. At this moment, we are happy that the government sent arguments to maintain the common zero rate in all European wine countries, said the president of the wine association, Martin Claude. However, according to him, after the cancellation of the tax on gifts of up to 500 crowns for a peaceful marriage, some crimes will dry up. There are those who sell 40 percent of their production this way.

Gambling is also making its way

The changes will also affect gambling. In this regard, the government is proposing a second rate of 23 per cent, which currently applies to all games (eg dice, cards, Chili), bingo, betting odds (fix bet, live bet), summation games (betting), raffles and small-scale competitions ( Poker) will be 30 percent.

However, many may think that the government is proposing to lower the threshold for exemption from raffles and gambling from one million to 50,000 K.

A complete cancellation of this exemption would not be effective, or would mean a significant additional administrative burden for the state when each game would have to file a tax return and prove not only their income, but also their income (that is, each person involved). in the machine), according to the Ministry of Finance.

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