ROAD TAX IN THE CZECH REPUBLIC DURING THE PERIOD Břetislav Andrlík

Similar documents
IMPORTANCE OF THE RECURRENT TAX ON IMMOVABLE PROPERTY IN THE TAX SYSTEMS OF EU COUNTRIES

THE RETURN-RISK PERFORMANCE OF SELECTED PENSION FUND IN OECD WITH FOCUS ON THE CZECH PENSION SYSTEM

THE PROPOSAL OF THE CHANGES IN THE TAXATION OF INCOME OF THE NON-PROFIT ORGANIZATIONS

Introduction of the Quick Reaction Mechanism: Solution to Tax Evasion on Fuel Market in the Czech Republic or Belief only?

EFFICIENCY OF ROAD TAX IN THE TAX SYSTEM OF THE CZECH REPUBLIC

Tax System of the Czech Republic

TAXATION OF PASSENGER MOTOR VEHICLES WITH ENVIRONMENTAL ASPECT

Tax System of the Czech Republic

DIFFERENCES IN AVERAGE PERIOD OF RECEIVING PENSION BY EDUCATION LEVEL

ECONOMIC IMPACTS OF CIGARETTE TAXATION DEVELOPMENT IN THE CZECH REPUBLIC AND THE SLOVAK REPUBLIC

PROPOSALS OF CHANGES IN THE FINANCIAL STATEMENTS OF NON-PROFIT ORGANIZATIONS

THE PROBLEM OF ACCOUNTING METHODS IN COMPANY VALUATION

ABOLISHING CASH IN EUROPE: THE BENEFITS AND DRAWBACKS OF ELECTRONIC TRANSACTIONS

REVISED OECD TRANSFER PRICING GUIDELINES AND THE CZECH TAX POLICY

ACTA UNIVERSITATIS AGRICULTURAE ET SILVICULTURAE MENDELIANAE BRUNENSIS

LEGAL AND ECONOMIC ASPECTS OF DEEPER EU INTEGRATION IN THE CZECH REPUBLIC

ScienceDirect. A Comparison of Several Bonus Malus Systems

MODELS OF DETECTION OF MANIPULATED FINANCIAL STATEMENTS AS PART OF THE INTERNAL CONTROL SYSTEM OF THE ENTITY

RANGE OF DATA REPORTED TO THE REQUIREMENTS OF THE IAS 12 AND IMPACT OF THE IFRS ADOPTION FOR TAX PURPOSES IN THE TAX COLLECTION OF THE CZECH REPUBLIC

COMPONENTS OF THE FINANCIAL PERFORMANCE OF AGRICULTURAL ENTERPRISES

Czech Republic s Third National Communication under the United Nations Framework Convention on Climate Change, 2001.

Experiences of SAO in auditing water management

Procedia - Social and Behavioral Sciences 220 ( 2016 ) 79 84

PPP PROJECTS SOURCES AND SUPPLIERS

Comparison of Valuation of Financial Instruments according to the International and Czech Accounting Standards in the Context of Performance Reporting

The Medium-term Financial Sustainability of the Czech public Health Insurance System

This Legal Update provides information on some important legislative changes which have been passed in October, November and December 2010.

VAT Exemptions for Company Cars

Financial system and agricultural growth in Ukraine

ANALYSIS OF POTENTIAL IMPACTS OF INCLUSION OF LOCALLY SUPPLIED SERVICES INTO REDUCED VAT RATE ON THE SUPPLIERS OF THESE SERVICES

UNEMPLOYMENT AND GDP

COMPARISON OF SOLVENCY CALCULATION METHODS IN THE CZECH INSURANCE COMPANIES AFTER

HARMONISATION EFFORTS IN THE FIELD OF ACCOUNTING OF PUBLIC SECTOR

ARE COMPANIES IN THE CZECH REPUBLIC READY TO IMPLEMENT IFRS FOR SMEs?

MACROECONOMIC AND DEFENCE POLICY OF THE CZECH ECONOMY DURING

IDENTIFICATION OF CAUSES OF DIFFERENCES IN STATUTORY AND EFFECTIVE RATES OF CORPORATE TAXES

THE IMPACT OF EXCHANGE RATE MOVEMENTS ON FIRM VALUE IN VISEGRAD COUNTRIES

RESEARCH AND DEVELOPMENT EXPENDITURE AND COOPERATION OF PUBLIC AND PRIVATE SECTOR IN R&D IN THE CZECH REPUBLIC

CZECH REPUBLIC. Radek Neužil Member of Presidium

EATLP 2016 Max Planck Institute/ Ludwig Maximilian University of Munich

LABOUR PRODUCTIVITY IN THE CZECH REPUBLIC,

Determinants of Capital Structure in Nigeria

MASS LAYOFFS IN THE CZECH REPUBLIC AND SLOVAKIA

ENERGY SAVINGS BY 2030 ACCORDING TO EU TARGETS : POTENTIAL, COSTS AND IMPACTS ON ECONOMY, EMPLOYMENT AND PUBLIC SPENDING

SYNERGIC MOTIVES AND ECONOMIC SUCCESS OF MERGERS OF CZECH COMPANIES

INSTITUTIONAL SECTOR AND ITS INFLUENCE ON THE DEVELOPMENT OF SELECTED INDICATOR. Michaela ROUBÍČKOVÁ

INTANGIBLE ASSETS REPORTING: THE CASE OF CHEMICAL AND PHARMACEUTICAL INDUSTRY IN THE CZECH REPUBLIC

EVIRONMENTAL TAX. ARE VEHICLE REGISTERS IN THE EU PREPARED?

The Implementing Activity-based Costing Technique and Its Impact on Profitability: A Study of Listed Manufacturing Companies in Jordan

TAX INFORMATION EXCHANGE INFLUENCE ON CZECH BASED COMPANIES BEHAVIOR IN RELATION TO TAX HAVENS

Introduction. As a result, the concept benchmark tax system is the key factor in the definition of tax expenditures. This concept is defined by tax.

DEVELOPMENT OF TRADE IN CZECH REPUBLIC IN 2004

Available online at ScienceDirect. Procedia Economics and Finance 12 ( 2014 )

Introduction. As a result, the concept benchmark tax system is the key factor in the definition of tax expenditures. This concept is defined by tax.

THE CONSERVATISM PRINCIPLE IN ECONOMIC MANAGEMENT OF AN INDUSTRIAL COMPANY. Andrea SUŠKOVÁ, Jana BUCHTOVÁ

THE ROLE OF THE TAX ON IMMOVABLE PROPERTY IN THE MUNICIPAL BUDGETS IN THE CZECH REPUBLIC

OPTIMIZATION OF PENSION COMPANIES IN THE CZECH REPUBLIC

Institute of Economic Research Working Papers. No. 52/2017 VAT AND ITS INFLUENCE ON BUYING BEHAVIOUR. Vladimíra Kučerová

Penzijní společnost České pojišťovny The largest pension savings provider in the Czech Republic.

CHALLENGES OF CORPORATE RISK MANAGEMENT AFTER GLOBAL FINANCIAL CRISIS

DEVELOPMENT OF MERGERS IN THE CZECH REPUBLIC IN

THE IMPACT OF FOREIGN DIRECT INVESTMENT ON UNEMPLOYMENT IN JAPAN

DELAYING PAYMENTS AFTER THE FINANCIAL CRISIS: EVIDENCE FROM EU COMPANIES

Increasing the efficiency of revenue collection in the budget of the Republic of Kosovo

ECONOMIC DEVELOPMENT OF VISEGRAD FOUR IN THE PERIOD

Fact Sheet No.14 Corporate Tax and Depreciation

Modelling of economic phenomena and dependences for corporate sustainable performance Zuzana Chvátalová 1, Jiří Hřebíček 2

FIRM-LEVEL BUSINESS CYCLE CORRELATION IN THE EU: SOME EVIDENCE FROM THE CZECH REPUBLIC AND SLOVAKIA Ladislava Issever Grochová 1, Petr Rozmahel 2

Debt Portfolio Management Quarterly Review. September 2013

INNOVATIONS IN HIGH-TECH SECTORS DURING THE RECESSION AND RECOVERY CONDITIONS - COMPARISON CZECH AND SLOVAK REPUBLIC

MISSING CATEGORICAL DATA IMPUTATION AND INDIVIDUAL OBSERVATION LEVEL IMPUTATION

THE CYCLICALITY OF GOVERNMENT EXPENDITURE AND WAGNER S LAW CASE OF CZECH REPUBLIC, SLOVAKIA, HUNGARY, BULGARIA AND ROMANIA

THE INFLUENCE OF ALLOCATION FORMULA ON GENERATION OF PROFIT IN DIFFERENT ECONOMY SECTORS

Doing Business in the Czech Republic

EUROPEAN CODE OF SOCIAL SECURITY

ACT No. 139 of 14 March 2006 on Concession Contracts and Concession Procedure (the Concession Act)

ECONOMIC SENTIMENT INDICATOR AND ITS INFORMATION CAPABILITY IN THE CZECH REPUBLIC

Contracting authority. Czech Republic Ministry of Labour and Social Affairs. PhDr. Iva Šolcová, Director of Department 72.

Methodology and Information System for Evaluating Environmental Protection Expenditure Efficiency at the Local Level

Accounting for Cross-border Mergers and Its Problems #

Experiences with the implementation of Evaluation plans in structural funds programmes in the Czech Republic

Is economic growth sustainable in Romania?

Revista Economică 69:2 (2017) ASSESSMENT OF THE COMPANY'S PERFORMANCE IN TERMS OF GAINS AND LOSSES FROM REVALUATION OF FIXED ASSETS RECORDED IN EQUITY

FINANCIAL ACCOUNTS VIEW ON THE GOVERNMENTAL EXPENSES AND THE AUTONOMY ADMINISTRATION IN THE CONDITIONS OF THE SLOVAK REPUBLIC

Barbora Drugdová. University of Economics in Bratislava, Bratislava, Slovak Republic

A BRIEF OVERVIEW OF THE ACTIVITY EFFICIENCY OF THE BANKING SYSTEM IN ROMANIA WITHIN A EUROPEAN CONTEXT

REPORT ON KOMERČNÍ BANKA S FINANCIAL RESULTS AS AT 31 MARCH 1999

Folia Oeconomica Stetinensia DOI: /foli Progress in Implementing the Sustainable Development

University of Economics, Prague. IFRS and Corporate Income Tax in Small Open Economy. David Procházka

1.) Recent inflation divergence in CEE focus on food prices and services

Assessment of the Fulfilment of the Maastricht Convergence Criteria and the Degree of Alignment of the Czech Economy with the Euro Area

DIFFERENCES IN FINANCIAL STATEMENTS OF BUSINESS ENTITIES IN THE CZECH REPUBLIC

LEGAL AND ECONOMIC CONTEXT OF THE CZECH CIVIL CODE RULES ON FAMILY ENTERPRISES

FINANCIAL CONTROL OF FUNDS CO-FINANCED FROM THE EU BUDGET: POSSIBILITIES OF CONSIDERING NEW AND MORE FAVORABLE LEGAL PROVISIONS

ASSESSMENT OF THE FULFILMENT OF THE MAASTRICHT CONVERGENCE CRITERIA AND THE DEGREE OF ECONOMIC ALIGNMENT OF THE CZECH REPUBLIC WITH THE EURO AREA

CZECH REPUBLIC Overview of the tax-benefit system

WHAT CAN TAX REVENUES TELL US ABOUT THE ECONOMIC ACTIVITY OF REGIONS?

Environmentally related taxes by economic activity. Quality report for the 2017 data collection. Country: Germany Date:

The Position of Financial Arbitrator among other alternative dispute resolution

THE IMPLEMENTATION OF THE IFRS FOR SME IN THE EU

Transcription:

Acta Oeconomica et Informatica. XVI (Number 1, 2013): 51 55 Copyright 2013 FEM SAU @ APES COMMENT TO POLICIES ROAD TAX IN THE CZECH REPUBLIC DURING THE PERIOD 1993 2011 Břetislav Andrlík Address: Břetislav Andrlík The Private College of Economic Studies in Znojmo, Department of Finance and Accounting, Loucká 656/21, 669 02 Znojmo, Czech Republic Corresponding author: andrlik@svse.cz ABSTRACT The paper provides descriptive analysis of the road tax performance in the CR in connection to relevant legal amendments to the Act No. 16/1993 Coll. Data on road tax from 1993 to 2011 were used in this analysis and are available from the Ministry of Finance of the Czech Republic. Road tax in the Czech Republic represents only a small part of the total tax revenue and its collection provides insufficient funds for maintenance and development of road infrastructure in the Czech Republic. Road tax collection is expected to grow in the future as a result of ongoing replacement and modernization of vehicle fleet, growing number of vehicles, strengthening of environmental aspects of taxes and internalisation of costs of transport. Keywords: road tax, tax collection, Czech Republic JEL classifications: H25, H32, H71

Road tax in the Czech Republic (CR) was imposed by the Tax System Act No. 212/1992 Coll. This tax is valid from January 1 st 1993 and applies to road motor vehicles and their trailers registered and operated in the CR and used for business or other self-employment purposes. The principal legislation of road tax in the CR is the Act No. 16/1993 Coll. the Act on road tax, which was amended afterwards several times. By imposing road tax, government raise funds for maintenance and development of road infrastructure. According to the CR tax classification, the road tax belongs to the property tax group. Generally, low tax yields combined with high direct administration costs are the strongest arguments in favour of amendment or abolition of a particular tax. Road tax effectiveness in the CR is discussed by Andrlík (2012). The paper provides an analysis of the road tax performance in the CR in connection to relevant legal amendments to the Act No. 16/1993 Coll. Data on road tax from 1993 to 2011 were used in this analysis and are available from the Ministry of Finance of the Czech Republic. In the period from 1993 to 2011 road tax collection in the CR increased by 19.7 % (tab.1). Nevertheless, road tax share in property taxes revenue has been declining over time. While in 1993 road tax collection was the most important source of property taxes revenue, in 2011 it felt to 3 rd place after real estate tax and real estate transfer tax. The average annual road tax revenue in the analysed period reached 5 060 mill. CZK. Changes in the road tax collection over time can be largely explained by legal amendments introduced to the Act No. 16/1993 Coll. as described bellow: Abolishment of tax exemption for vehicles with controlled catalytic converters (vehicles meeting ecological limits defined by specific regulations ECE UN and the EU) was introduced by the Act No. 143/1996 Coll. and the Act No. 61/1998 Coll. Due to these amendments, road tax collection in 1999 increased by 19.5 %. The Act No. 303/2000 Coll. introduced tax reduction (25 %) for vehicles meeting the EURO 2 emission standard and tax reduction (50 %) for vehicles meeting the EURO 3 emission standard. Since this amendment came into force only in September 2000, it had postponed negative effect on tax collection and annual decline of road tax collection reached 5.4 % in 2001. In 2002 road tax collection increased by 4.3 % induced by the Act No. 493/2001 Coll. This was caused by the termination of tax reduction for vehicles meeting the EURO 2 emission limits. 52

AOEI / Surname of the author et al. 20xx : x (x) x-xx Table 1 Property taxes collection in CR 1993 2011, in mill. CZK 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Property taxes 8 554 9 894 10924 12 168 13 457 14 761 16 321 16 030 16 239 17 946 19 351 20 836 18 285 18 961 21 613 21 607 19 215 21 525 25 474 of it: Road tax 4 335 4 147 3 930 4 321 4 565 4 373 5 226 5 587 5 283 5 512 5 738 5 509 5 191 5 428 5 915 6 002 4 795 5 100 5 187 Annual % change of road tax - 96 95 110 106 96 120 107 95 104 104 96 94 105 109 101 80 106 102 collection Inheritance tax 13 55 91 97 116 146 148 122 112 86 100 100 103 124 109 115 88 87 78 Gift tax 156 389 357 296 350 427 405 413 475 61 648 818 510 604 692 345 162 138 4 279 Real estate transfer tax 616 1 645 2 768 3 464 4 488 5 677 6 271 5 439 5 834 7 171 8 025 9 461 7 494 7 788 9 774 9 950 7 809 7 453 7 362 Real estate tax 3 434 3 658 3 778 3 991 3 938 4 138 4 271 4 469 4 535 456 4 840 4 918 4 987 5 017 5 123 5 195 6 361 8 747 8 568 Source: own calculation based on data from the Czech Tax Administration, (2012a, 2012c) Table 2 Road tax in the CR, 1994-2010 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 No. of declarations 279 979 334 460 399 157 443 229 479 914 506 279 495 820 517 428 528 848 544 269 539 786 525 648 531 697 513 087 513 064 478 026 441 040 No. of tax subjects n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 810 536 809 254 816 705 820 997 828 008 828 378 Average road tax per subject n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6 404 6 707 7 243 7 311 5 791 6 157 CZK Road tax yield (%) - 100 103 98 99 100 99 100 102 98 99 99 99 102 99 97 98 Source: own calculation based on data from the Czech Tax Administration, (2012c). Data on tax subject number before 2005 are not provided due to their inconsistency with later ones.

Further growth of road tax collection in 2003 by 4.1 % can be attributed to the Act No. 207/2002 Coll., extending road tax obligation also to vehicles over 12 tonnes weight, used for the transport of goods, besides vehicles used for business purposes. In 2004 and 2005 the fall of road tax collection by 3.9 % and by 5.8 % correspondingly, were observed. This change could be related to the Act No. 102/2004 Coll. according to which road tax was applied to vehicles designated for business activity and calendar months when they were in use. In addition tax rate was reduced for vehicles meeting EURO 2 (60%) and EURO 3 (66%) emission limits. The Act No. 635/2004 introduced road tax reduction for vehicles over 12 tonnes. The Czech Tax Administration (2012b) assigned decline in tax collection to permanent reduction of tax rate for vehicles meeting the EURO 2, EURO 3 and higher emission limits. In 2006 the Act No. 545/2005 Coll. came into force and increased tax rate for vehicles meeting EURO 2 emission limits, when 60% tax reduction was cut to only 40% reduction. Tax rate for vehicles meeting EURO 3 emission limits also increased. 66% reduction was cut to 48% tax reduction. Road tax collection in 2006 rose again by 4.6 %. In 2009 road tax collection decreased by 20.1 % as a consequence of imposing the amendment No. 246/2008 Coll. according to which a tax rate reduction is applied for first registration of vehicles. The average road tax collection reached the highest amount in 2008. In the following years, according to the Czech Tax Administration (2012b), road tax collection and number of tax declarations (tab.2) were affected by unfavourable economic situation resulting from the global financial and economic crisis. Road tax yield fluctuations over time (tab.2) can be explained by taxpayers compliance behaviour. The average road tax yield in the observed period reached 99.45 %. Road tax in the Czech Republic represents only a small part of the total tax revenue (0.74 % in 2010 and 1.15 % in average) and its collection provides insufficient funds for maintenance and development of road infrastructure in the Czech Republic. Road tax collection is expected to grow in the future as a result of ongoing replacement and modernization of vehicle fleet, growing number of vehicles, strengthening of environmental aspects of taxes and internalisation of costs of transport. 54

REFERENCES ANDRLÍK, B. 2012. Efficiency of road tax in the tax system of the Czech Republic. In Acta Universitatis agriculturae et silviculturae Mendelianae Brunensis. ISSN 1211-8516, vol. LX, 2012, no. 2, p. 17-24. CUSTOMS ADMINISTRATION OF THE CZECH REPUBLIC, Annual reports [online]. 2012, [Accessed 2012-03-15]. Available: http://www.celnisprava.cz/cz/statistiky/stranky/vyrocni-zpravy.aspx. THE CZECH TAX ADMINISTRATION, Development of collection of taxes in the Czech Republic in the years 1993-2011 [online]. 2012a, [Accessed 2012-03-06]. Available: http://cds.mfcr.cz/cps/rde/xchg/cds/xsl/13879.html?year=0. THE CZECH TAX ADMINISTRATION, Annual reports and related documents [online]. 2012b, [Accessed 2012-03-07]. Available: http://cds.mfcr.cz/cps/rde/xchg/cds/xsl/325.html?year=0. THE CZECH TAX ADMINISTRATION, Number tax declaration [online]. 2012c, [Accessed 2012-03-14]. Available: http://cds.mfcr.cz/cps/rde/xchg/cds/xsl/13887.html?year=0. Instruction D-205 Ministry of Finance of the Czech Republic. Instruction D-241 Ministry of Finance of the Czech Republic. Act No. 16/1993 Coll., Road Tax Code, amended by later regulations. Act No. 212/1992 Coll., Tax System Code, amended by later regulations. Act No. 243/2000 Coll., Budgetary Tax Code, amended by later regulations. 55