Inflation has finally slowed down

According to Prime Minister Petr Fiala, households and businesses will pay a maximum of six Czech crowns (25 U.S. dollar cents) per kilowatt-hour (kWh) of electricity, and a maximum of three crowns per kWh of gas, both of which include value-added tax (VAT).

PRAGUE, Sept. 12 (Xinhua) — The Czech government approved a price cap for electricity and gas after an extraordinary meeting on Monday evening.

According to Prime Minister Petr Fiala, households and businesses will pay a maximum of six Czech crowns (25 U.S. dollar cents) per kilowatt-hour (kWh) of electricity, and a maximum of three crowns per kWh of gas, both of which include value-added tax (VAT).

Finance Minister Zbynek Stanjura put the impact on the state’s budget at an estimated 130 billion crowns. These costs could be covered by revenues from state-owned companies, a newly proposed windfall profit tax and revenues from emission allowances, he said.

The minister added that the new windfall profit tax discussed on Monday by the government could cover up to 70 billion crowns alone by next year. However, the implementation of this tax must take into account a similar tax discussed at the European Union level, which the European Commission is expected to present this week.

People walk past the Czech National Bank in Prague, Czech Republic, on July 13, 2022. (Photo by Dana Kesnerova/Xinhua)

Inflation in the country finally slowed down after 13 months to a year-on-year rate of 17.2 percent in August, according to figures published by the Czech Statistical Office on Monday. But it is still well above the Czech National Bank’s tolerance band. Electricity prices rose by 34.6 percent, and gas by 61.4 percent.

On Sept. 3, an estimated 70,000 people descended on Wenceslas Square in Prague to protest against rising energy prices and called for the mitigation of the impact of the energy crisis. (1 U.S. dollar = 24.18 Czech crowns)

A woman fuels a vehicle at a gas station in Prague, Czech Republic, on July 13, 2022. (Photo by Dana Kesnerova/Xinhua)

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