Alternative State Budget in the Czech Republic

Prague, 20th November 2003

Hana FoltynovaVojtech MacaJan MelicharMilan Scasny

Society for Sustainable Living+420 251 080 402

Czech EFR Platform: www.czp.cuni.cz/ekoreforma

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Alternative State Budget – principals I.

- introduction of a revenue-neutral reform (zero increase of the current taxation load)

- 2 time periods – 2004 and 2013- alternative vs. „oficial“ state budget- only marginal deal with the non-

budgetary funds

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Alternative State Budget – principals II.

- no violation of the revenue-neutrality- public finances stability- radical, but gradual change of

consumption behaviour- clear and credible image of the future

development of the prices- long-term stability of the business

environment

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Alternative State Budget – rules I.

- Reduce labour-related costs- Promote environmental protection- Internalise external costs- Increase tax system efficiency, and fight

tax evasions- Reduce environmentally and socially

harmful subsidies- Develop human resources- Prepare for EU membership

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State Budget – obstacles

- Long-term deficit trends and public debt increase

- Persevering elements of inefficiency and the lack of co-ordination

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EU tax rates vs. Czech tax rates I.

Product

Min. rate EEC 92/82

nominal prices

Min. rate in the Commission

proposal COM(97)30

(„Monti“) 1998-2000-2002

COM2003 (Ecofin

20/3/2003)

Rates in the Czech Rep. per

1000 l

Difference between rates (EU-minimum

and CzR)

CZK/ 1000 l

EUR/ 1000 l

EUR/ 1000 l

CZK/l,MJ,kW

h

Motor fuels                  

Unleaded petrol, per 1000 l 287 417 450 50

0 360 10 840 357 -3 -0,10

Leaded petrol, per 1000 l 337 417 450 50

0 421 10 840 357 n.a. n.a.

Diesel, per 1000 l 245 310 343 393 302 8 150 268 -34 -1,03

LPG, per 1000 kg 100 141 174 224 125 2 850 94 -31 -0,95

Kerosene, per 1000 l 245 310 343 393 302 10 840 357 55 1,66

Natural gas, per GJ   2,9 3,5 4,5 2,6 0 0 -3 -0,08

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EU tax rates vs. Czech tax rates II.

ProductMin. rate in the Commission

proposal COM(97)30 („Monti“) 1998-2000-2002

COM2003 (Ecofin 20/3/2003)

Rates in the Czech Rep. per 1000 l

Difference between rates (EU-minimum

and CzR)

CZK/ 1000 l

EUR/ 1000 l

EUR/ 1000 l

CZK/l,MJ,kWh

Light heating oil, per 1000 l 21 23 26 21 0 0 -21 -0,64

Heavy heating oil, 1% sulphur/1000 kg 18 23 28 15 0 0 -15 -0,46

Other heavy heating oils /1000 kg 22 28 34 15 0 0 -15 -0,46

Kerosene, per 1000 l 7 16 25 0 0 0 0 0,00

LPG, per 1000 kg 10 22 34 0 0 0 0 0,00

Natural gas, per GJ 0.2 0.45 0.7 0.3 (non-bus.) 0,15 (busin.) 0 0 0 0,01

Solid energy products (coal) per GJ 0.2 0.45 0.7 0.3 (non-bus.) 0,15

(busin.) 0 0 0 0,01

Electricity, per MWh 1 2 3 1,0 (non-bus.) 0,5 (indust) 0 0 1 0,03

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Alternative State Budget – 2004Budget composition Indicator Proposal 2004 Alt. Proposal

2004Alt. Proposal 2004 /

Proposal 200411 Taxes on incomes, profits and capital revenues 179 800 179 800 1,00

         

12 Taxes on domestic commodities and services 217 600 226 822 1,04

121 Value added tax 132 586 135 739 1,02

  + additional revenue from energy taxation under Law

No. 353/2003 Sb. on Excise Duties 814  814 1,00 

122Special taxes and fees on domestic commodities and

services (previously excise duty item) 77 169 83 238 1,08

  + additional state budget revenue from energy taxation

under Law No. 353/2003 Sb. on Excise Duties 7 031 7 031  1,00 

         

13 Taxes and fees on selected commodities and services 5 580 5 580 1,00

133 Fees and collections in the area of environment 1 280 1 280 1,00

         

16Social security, contributions towards state

employment policy, and public health insurance 292 318 275 251 0,942

         

1 TAX INCOMES TOTAL 714 398 706 553 0,99

2 NON-TAX INCOMES TOTAL 25 202 25 202 1,00

3 CAPITAL INCOMES TOTAL 1 188 1 188 1,00

4 SUBSIDIES RECEIVED 13 292 13 292 1,00

  STATE BUDGET INCOMES TOTAL 754 081 746 236 0,99

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Alternative State Budget – 2013

Budget composition Indicator 2013 Alt. Proposal 2013 2013 / Alt. Proposal 201311 Taxes on incomes, profits and capital revenues 303 768 303 768 1,00

         

12 Taxes on domestic commodities and services 301 170 410 489 1,36

121 Value added tax 224 001 236 320 1,05

         

122Special taxes and fees on domestic

commodities and services 77 169 174 169 2,26

  - electricity, natural gas and coal tax   50 000  

  - fuel tax   47 000  

13Taxes and fees on selected commodities and

services 2 163 2 913 1,35

133 Fees and collections in the area of environment 2 163 2 913 1,35

         

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Social security, contribution towards state employment policy, and public health insurance 493 865 383 796 0,78

         

1 TAX INCOMES TOTAL 1 133 236 1 133 236 1,00

2 NON-TAX INCOMES TOTAL 42 578 42 578 1,00

3 CAPITAL INCOMES TOTAL 2 007 2 007 1,00

4 SUBSIDIES RECEIVED 22 179 22 179 1,00

  STATE BUDGET INCOMES TOTAL 1 200 000 1 200 000 1,00

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Alternative State Budget – summary

400

500

600

700

800

900

1000

1100

1200

1300

1400

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

CZK bln., current prices, 2000Other public revenues

Ecological taxes and fees

Taxes on labor incl. insurance

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Alternative State Budget – structure of ecological taxes

0

50

100

150

200

250

2000

2002

2004

2006

2008

2010

2012

2014

CZK bln, current pricesTax on elektricity, coal, gas

Taxes on fuels and oils

Taxes on transport

Environmental fees

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Alternative State Budget – summary

Increase of the share of environmental taxes on the total tax revenue

- from the expected 6.9% of the total state budget incomes (2.8% of the GDP, 65 CZK bln) in 2004

- to about 10.0% of the total public incomes (approx. 4.2% of the GDP, 195 CZK bln) in 2013

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PLATFORM on EFR www.czp.cuni.cz/ekoreforma

• database on projects+events • database on enviro-related levies in the

CR • on-line library• organisation of seminars, round-table

(Sept.), conferences • meet-point for researchers, students,

NGO, information portal for everybody

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Activities within the REC project

- Leaflets- Study – alternative state budget- Seminar in Prague- Publications- Cooperation with the DUHA

movement - leaflets- Czech-German initiative – a cycle of

seminars- ETR group

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Thank you for your attention.

Hana Foltýnováhana.foltynova@czp.cuni.cz

+420 251 080 402

Czech EFR Platform: www.czp.cuni.cz/ekoreforma