Excise duty on diesel fuel was increased in the Czech Republic by CZK 1.50 (roughly 6 euro cents) per litre on Tuesday. The country's leading haulage association has warned the higher operating costs caused by the change will see Czech hauliers lose business to rivals in other Central European nations.
The Czech Government says it has increased the duty due to diesel prices dropping recently. Duty on diesel had been cut last year as a result of the rising prices seen following Russia’s invasion of Ukraine.
The government says the move will generate money for the state budget. Nevertheless, Czech hauliers claim that they could lose business to foreign competitors due to the high fuel costs, which would in turn see the industry generate lower tax receipts.
Commenting on the change in duty, Martin Felix of the Cesmad Bohemia haulage association told logistika.ekonom.cz:
“The tax reduction helped us a lot, but now it will reach a higher level, which will mean a handicap for Czech carriers in tenders where pennies are at stake.” Felix added:
“Czech carriers pay an average of 800,000 to 1 million crowns a year in taxes and levies, while foreign carriers leave only roughly 70,000 crowns for tolls.”
The increase in the price of fuel is set to see transportation rates rise in the country, which will then inevitably fuel further inflation. Some hauliers had already announced before the duty increase that they would be applying surcharges to cover the extra cost.
However, when it comes to international transport, Czech hauliers are said to be fearful that the extra cost of fuel will see them undercut by competitors from Poland, as well as countries further afield like Romania and Bulgaria.
