The Czech Finance Ministry plans to raise the excise tax on tobacco and cigarettes by 10 percent in 2020, aiming to raise up to an additional 7.7 billion crowns in state budget revenue, it said in a proposal on the government’s website on Friday.
The tax rise is expected to increase budget revenue more in 2021, by up to 9.2 billion crowns, the proposal said, as effects of pre-stocking of lower-taxed products wane.
The ministry also proposed higher taxes on spirits and gambling, which should boost budget revenue by 1.3 billion crowns in 2020, it said.
The proposal must win the parliament’s backing to take effect.
The government has been seeking to boost revenue to fund hikes in pensions and public sector wages as economic growth cools down.