1. Taxes and Fiscal Decentralization
Public Finance B
Ing. David Slavata, Ph.D.

2. Tax system in CZ Direct taxes Corporate tax Personal income tax
Property tax
Tax on equired property
Inheritance and gift tax
Road tax

3. Undirect taxes
VAT
Consumption taxes
Alcohol tax Kč/litre, 285Kč/litre
Beer tax from ,-Kč/hl – 32,-Kč/hl
Vine tax ,40Kč/litre
Tax on tobacco from 1,42Kč/cigarette
Tax on fuel and lubricants 10,95Kč/litre, 12,84Kč/litre

4. Undirect taxes
Ecological taxes
Tax on natural gas
Electricity tax 28,30Kč/Mwh
Tax on solid fuels (coal) 8,50Kč/GJ

5. Local Fees and Charges Charge from dogs Fee from spa or holiday stay
Charge from accomodation capacity
Entrance fee
Charge for use of public space
Fee for permition to entry by car
Waste disposal fee
Fee for valuating of rural land into building land

6. Budgeting of taxes from 1.1.2017
VAT
Regional governemnt 8,92%
Municipal government 21,4%
Central government 69,68
Corporate tax
Regional government 8,92%
Municipal government 23,58%
Central government 67,50%
Personal Income Tax (tax deducted)

7. Budgeting of taxes from 1.1.2017
Personal Income Tax (from self employment)
Municipalities and Regions 60%
Regional governemnt 8,92%
Municipal government 23,58%
Central government 67,50%
Central Government 40%
Personal Income tax (from dependent aktivity)
Regional government 8,92%
Real estate tax
Municipal government 1000%

8. How to identify local government revenues
Low tax revenue, not interested for central government
High administrative cost of taxes for central government
Unpopular taxes
Other taxes

9. Local government revenues
Local taxes (Parking tax)
Tax surcharges (tax + s)
User fees
Revenues from own properties and companies

10. EU recommendation for decentralised taxation
The structure of decentralised taxation should ensure adequate level of providing public goods.
Local governments should be entitled to change the rates of taxes
Local taxes should have sufficient yield and low administrative cost
Local taxes should be a stable and forecasting
Local taxes should be neutral
They should not motivate for migration
They should not influence the local economical structure
They should not worsen welfare of low social class
Central government should enable possibility for administration of local taxes for local governments

11. It is recommended to prevent
big and quick changes of tax rates
steps which complicate local tax collection
prolongation in transfer of finances from central budget to local budgets
insufficient informations on tax collection
Technical and educational support of central government to the local governments
Equal procedure for tax recovery for all of regions