Czech Government to Increase Taxes on Alcohol, Tobacco and Gambling

The Czech government is going to raise the taxes on alcohol, tobacco and gambling. The Czech Finance Minister Alena Schiller has cited an increase in average salary and purchasing power of the citizens to advocate an increase in taxes.

“The average wage growth [in the Czech Republic] between 2009 and 2018 was 45%, while consumer tax on alcohol was last increased in 2010 and we will not raise it again until 2020,” Alena Schiller said.

As per the proposed tax revision, taxes on hard liquor would increase by 13%, cigarettes by 10%, sports betting by 2% and lotteries and games of chance by 7%. The revised and increased taxation could chip in an additional 10 billion crowns in annual tax revenue once it comes into effect.

“Both the World Health Organization and the OECD recommend that we do something about alcohol and tobacco consumption, and one of the most effective recommendations is a higher tax burden,” Czech Health Minister Adam Vojtech said.