Temporary decrease of excise tax on fuel

On the basis of an amendment to the Income Tax Act effective from 1 June until 30 September 2022, the excise tax on diesel and unleaded petrol will be reduced by CZK 1.50 per litre as a means of mitigating the current rise in fuel prices. Excise tax would fall from the current CZK 12.84 to 11.34 per litre (petrol) and from CZK 9.95 to 8.45 per litre (diesel).

Because excise tax is included in the calculations of VAT on fuel, the regulation could decrease fuel prices by up to CZK 1.80 per litre. The Ministry of Finance plans to monitor fuel prices with the help of those fuel distributors who are excise tax payers. The Ministry wants to make sure that the reduced excise tax will really affect the final prices for customers.

The decrease in excise tax will concern only petrol and diesel that will be released into free tax circulation between 1 June and 30 September 2022. It will not apply to mineral oils that will be produced during that period but will not be released into free tax circulation. The amendment will be effective from 1 June 2022.