Climate change taxation reforms and incentives in the Czech Republic

1. Has your country ratified the Paris Agreement? 

Yes, October 5, 2017

2. Has your country introduced environmental taxes?

2.1 Energy taxes

Yes, there are three energy taxes in the Czech Republic: natural gas tax, solid fuels tax and electricity tax. 

There is also a mineral oil tax (petrol, oil, etc.).

2.2 Transport Taxes

There is a road tax in the Czech Republic which applies to vehicles: (i) registered in the Czech Republic; (ii) operated in the Czech Republic; and (iii) used for business activities. It also applies to all trucks with a maximum authorised weight of over 3.5 tonnes registered in the Czech Republic.

2.3 Pollution taxes

No

2.4 Resources taxes

No

3. Has your country introduced a carbon tax?

There is no separate carbon tax, but it is considered to be included in the solid fuels tax (black coal, brown coal/lignite, coke, peat, etc.) and in the natural gas tax. 

4. Does your country offer sustainability incentives (tax credits, subsidies or other business incentives) to encourage taxpayers to engage in behaviours and develop technologies that can impact positively the environment? 

Yes, there are number of incentives, such as: subsidies programmes (operated by the Ministry of Environment and the State Environmental Fund); environmental pollution fees and use of natural resources fees (which represent a negative motivation deterring the polluters from polluting the environment); emissions trading, etc. 

5. Has your country recently announced tax reforms connected to climate change? 

No

6. Other comments

N/A