Due to martial law in Ukraine and the coronavirus pandemic, fuel prices have risen sharply in the Czech Republic. The inflation rate also rose to record highs. The government has already taken measures to regulate fuel prices fuel prices, and also decided to abolish the road tax in the Czech Republic. The tax has been abolished for cars, buses and trucks up to 12 tons.
Any entrepreneur in the Czech Republic who uses his car for commercial purposes must pay road tax. Cars of firms that are used to conduct business are also taxed. There are more than 800,000 such taxpayers in the country. You must file an annual tax return and pay tax in advance four times a year. The amount of the tax depends on the engine size of the car and the number of axles for trucks. Thus, car owners can save up to 4200 crowns per year.
The abolition of the road tax is not the only change, the obligation to mix bio-components with diesel fuel has also been abolished, excise taxes on gasoline and diesel have been reduced, and VAT payment has been allowed to be deferred until the end of October. All measures should reduce the price per liter of fuel to 4.50 crowns.
For trucks and trailers over 12 tons, the road tax rate has been reduced to the minimum allowable level. Complete abolition of the road tax in this category is not yet possible.
Also, the Czech government is trying to stimulate demand for electric vehicles. One of the measures to address the unfavorable economic situation in the Czech Republic was the possibility of including non-state charging stations for electric vehicles in emission targets. An important decision was also to allow the use of old coal-fired boilers for two years – until 2024.
The Czech Ministry of Finance has also included support for low-emission vehicles in the package. We are talking about electric vehicles, hybrid vehicles or vehicles that run on natural gas. The tax for the use of such cars will be reduced for people who use such cars not only for business, but also for personal purposes.