Green Budget Reform Actions in the Czech

Republic

Prague, 21st November 2003

Hana Foltynova

Society for Sustainable Living

hana.foltynova@czp.cuni.cz+420 251 080 402

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

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Emission reduction in the Czech Republic, 1990 - 2000

Particulates by 91% at 57 kt/y

SO2 by 86% at 265 kt/y

NOx by 54% at 397 kt/y

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Energy is the biggest emission producer

CO2 more by 41 % than in the EU-15:- energy 42.4%, industry 25.3%, transport 8.1%, trade and services 12.1%

SO2 more by 40 % than in the EU-15:- 77% big emission-sources (10 biggest=50% from 77%)

NOx more by 39 % than in the EU-15:- 51% mobile- 44% big stacionary (10 biggest= 58% from 44%)

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Implementation of ETR in the CR –

formation of a coalition • interministerial working group for ETR

• a research project on ETR (November 2003 – December 2004)

• Czech-German Initiative for discussion about ETR in CR – a cycle of seminars (www.ekoreforma.cz – under construction)

• Platform for ETF in the CR - www.czp.cuni.cz/ekoreforma

• Alternative State Budget for 2004 with a perspective until 2013; a workshop in Prague, Manes, Nov. 20 2003

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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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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

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Alternative State Budget rules

- 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 (electricity, natural

gas, solid energy products, heating oils)

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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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Alternative State Budget – 2004Budget composition Indicator Proposal 2004

Alt. Proposal 2004

Alt. Proposal 2004 / Proposal 2004

11 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 2013

11 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 – structure of ecological taxes

0

50

100

150

200

250

2000

2002

2004

2006

2008

2010

2012

2014

CZK bln, current pricesTax on electricity, 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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Other activities of NGOs to support ETR

implementation

- Leaflets about ETR- NGO´s ETR working group- Cooperation with the DUHA

movement – leaflets about ETR- Publications and presentations in

media

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03/2004 a concept of ETR will be presented for the public discussion

04/2004 concept in the Czech government + continuation of the discussion

06/2004 concept submitted by the Czech government

12/2004 law about ETR in the Czech government

09/2005 law about ETR in the Parlament

Implementation of ETR in CR – plans of the MoE

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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