1. 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/ekoreformawww.czp.cuni.cz/ekoreforma

2. 2 Emission reduction in the Czech Republic, 1990 - 2000 Particulates by 91% at 57 kt/y SO 2 by 86% at 265 kt/y NO x by 54% at 397 kt/y

3. 3 Energy is the biggest emission producer CO 2 more by 41 % than in the EU-15: - energy 42.4%, industry 25.3%, transport 8.1%, trade and services 12.1% SO 2 more by 40 % than in the EU-15: - 77% big emission-sources (10 biggest=50% from 77%) NO x more by 39 % than in the EU-15: - 51% mobile - 44% big stacionary (10 biggest= 58% from 44%)

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6. 6 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)www.ekoreforma.cz Platform for ETF in the CR - www.czp.cuni.cz/ekoreformawww.czp.cuni.cz/ekoreforma Alternative State Budget for 2004 with a perspective until 2013; a workshop in Prague, Manes, Nov. 20 2003

7. 7 PLATFORM on EFR www.czp.cuni.cz/ekoreformawww.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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9. 9 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

10. 10 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)

11. 11 State Budget – obstacles -Long-term deficit trends and public debt increase -Persevering elements of inefficiency and the lack of co- ordination

12. 12 Alternative State Budget – 2004 Budget compositionIndicatorProposal 2004 Alt. Proposal 2004 Alt. Proposal 2004 / Proposal 2004 11Taxes on incomes, profits and capital revenues179 800 1,00 12Taxes on domestic commodities and services217 600226 8221,04 121Value added tax132 586135 7391,02 + additional revenue from energy taxation under Law No. 353/2003 Sb. on Excise Duties814 1,00 122 Special taxes and fees on domestic commodities and services (previously excise duty item)77 16983 2381,08 + additional state budget revenue from energy taxation under Law No. 353/2003 Sb. on Excise Duties7 031 1,00 13Taxes and fees on selected commodities and services5 580 1,00 133Fees and collections in the area of environment1 280 1,00 16 Social security, contributions towards state employment policy, and public health insurance292 318275 2510,942 1TAX INCOMES TOTAL714 398706 5530,99 2NON-TAX INCOMES TOTAL25 202 1,00 3CAPITAL INCOMES TOTAL1 188 1,00 4SUBSIDIES RECEIVED13 292 1,00 STATE BUDGET INCOMES TOTAL754 081746 2360,99

13. 13 Alternative State Budget – 2013 Budget compositionIndicator2013Alt. Proposal 20132013 / Alt. Proposal 2013 11Taxes on incomes, profits and capital revenues303 768 1,00 12Taxes on domestic commodities and services301 170410 4891,36 121Value added tax224 001236 3201,05 122 Special taxes and fees on domestic commodities and services77 169174 1692,26 - electricity, natural gas and coal tax 50 000 - fuel tax 47 000 13 Taxes and fees on selected commodities and services2 1632 9131,35 133Fees and collections in the area of environment2 1632 9131,35 16 Social security, contribution towards state employment policy, and public health insurance493 865383 7960,78 1TAX INCOMES TOTAL1 133 236 1,00 2NON-TAX INCOMES TOTAL42 578 1,00 3CAPITAL INCOMES TOTAL2 007 1,00 4SUBSIDIES RECEIVED22 179 1,00 STATE BUDGET INCOMES TOTAL1 200 000 1,00

14. 14 Alternative State Budget – structure of ecological taxes

15. 15 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

16. 16 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

17. 17 03/2004a concept of ETR will be presented for the public discussion 04/2004concept in the Czech government + continuation of the discussion 06/2004concept submitted by the Czech government 12/2004law about ETR in the Czech government 09/2005law about ETR in the Parlament Implementation of ETR in CR – plans of the MoE

18. 18 Thank you for your attention. Hana Foltýnová hana.foltynova@czp.cuni.cz +420 251 080 402 Czech EFR Platform: www.czp.cuni.cz/ekoreforma