Green Budget Reform Actions in the Czech Republic Prague, 21st November 2003 Hana Foltynova Society for Sustainable Living Czech EFR Platform:

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

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 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 ( – under construction) Platform for ETF in the CR - Alternative State Budget for 2004 with a perspective until 2013; a workshop in Prague, Manes, Nov

7 PLATFORM on EFR 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 Alternative State Budget – principals I. -introduction of a revenue-neutral reform (zero increase of the current taxation load) -2 time periods – 2004 and alternative vs. „oficial“ state budget

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

12 Alternative State Budget – 2004 Budget compositionIndicatorProposal 2004 Alt. Proposal 2004 Alt. Proposal 2004 / Proposal Taxes on incomes, profits and capital revenues ,00 12Taxes on domestic commodities and services ,04 121Value added tax ,02 + additional revenue from energy taxation under Law No. 353/2003 Sb. on Excise Duties814 1, Special taxes and fees on domestic commodities and services (previously excise duty item) ,08 + additional state budget revenue from energy taxation under Law No. 353/2003 Sb. on Excise Duties ,00 13Taxes and fees on selected commodities and services ,00 133Fees and collections in the area of environment ,00 16 Social security, contributions towards state employment policy, and public health insurance ,942 1TAX INCOMES TOTAL ,99 2NON-TAX INCOMES TOTAL ,00 3CAPITAL INCOMES TOTAL ,00 4SUBSIDIES RECEIVED ,00 STATE BUDGET INCOMES TOTAL ,99

13 Alternative State Budget – 2013 Budget compositionIndicator2013Alt. Proposal / Alt. Proposal Taxes on incomes, profits and capital revenues ,00 12Taxes on domestic commodities and services ,36 121Value added tax , Special taxes and fees on domestic commodities and services ,26 - electricity, natural gas and coal tax fuel tax Taxes and fees on selected commodities and services ,35 133Fees and collections in the area of environment ,35 16 Social security, contribution towards state employment policy, and public health insurance ,78 1TAX INCOMES TOTAL ,00 2NON-TAX INCOMES TOTAL ,00 3CAPITAL INCOMES TOTAL ,00 4SUBSIDIES RECEIVED ,00 STATE BUDGET INCOMES TOTAL ,00

14 Alternative State Budget – structure of ecological taxes

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 to about 10.0% of the total public incomes (approx. 4.2% of the GDP, 195 CZK bln) in 2013

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 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 Thank you for your attention. Hana Foltýnová Czech EFR Platform: