The opposition Czech Social Democrat party said Monday it is seeking to cut excise taxes on motor fuels and value added tax on natural gas.
"We're putting this proposal forward now due to the sharp increases in fuel prices," Milan Urban, shadow minister of industry, told Dow Jones Newswires Monday.
The Social Democrats' plan would cut taxes on motor fuels by 2.5 koruna ($0.16) a liter, meaning a 17% cut in tax on gasoline and a 20% reduction on tax on diesel fuel. The plan also seeks to lower VAT levied on natural gas used as a motor fuel to 9% from the current 19%. There is no excise tax levied on natural gas.
"But for the change to the VAT on natural gas, we'll need to get Brussels approval," Urban said, adding the Social Democrats will present the proposal to Parliament this week.
The plan is unlikely to pass through parliament, because although the Social Democrats and Communists together hold 100 seats in the 200 seat parliament, the ruling Civic Democrat party controls parliament thanks to two renegade Social Democrat members of parliament who vote with the Civic Democrats.