Tax regulation mechanism (Exemption from Consumption Tax)
Updated: 10.01.2019
Author: Boris Valach
In the Czech Republic, pure biofuels as well as the biofuel content of mixed fuels are exempt from consumption tax.
Eligible technologies
Subject to the tax allowance are only biofuels distributed for transportation purposes (§ 49 par. 13-15 Act No. 353/2003).
| Biofuels | Eligible for tax exemption are following biofuels: - Hydrogenated vegetable oils (§ 49 par. 13 Act No. 353/2003)
- Liquefied biogas (§ 49 par. 14 Act No. 353/2003)
- Mineral oil produced from non-food biomass or organic waste (§ 49 par. 15 Act No. 353/2003)
|
|---|
Amount
Some biofuels are exempt from consumption tax. For regular petrol fuel, this tax amounts to CZK 12,840 (€ 494) per 1,000 litres (§ 48 par. 1 Act No. 353/2003). For fatty acid methyl esters (FAME; nomenclature code 3824 90 99) the tax amounts to CZK 2,190 (€ 84) per 1,000 litres, and pure vegetable oils are taxed by CZK 1,610 (€ 62) per 1000 litres (§ 48 par. 10 Letters a and b Act No. 353/2003).
Addressees
Entitled party: End consumers of biofuels, resp. fuel producers.
Distribution of costs
| State | The costs of the tax exemption are borne by the state, which receives lower tax revenue. |
|---|
Czech Republic
