On Friday, Czech Parliament decided to proceed cigarette excise tax bill into 2nd reading after amendatory proposals.
Our view:
We see this procedure as obvious, given recent efforts of current Minister of Finance to soften tax hike only to minimal level required by EU which is EUR 60 per 1,000 cigarettes. However it is questionable if his proposal will be supported by other political parties as they previously proclaimed support the proposal of outgoing CSSD government. Actual vote on final version of the tax hike could take place in October.