The tax reliefs for mineralogical and metallurgical processes from the perspective of excise and energy taxes will be abolished
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The tax reliefs for mineralogical processes
As of January 2024, the excise duty refund on mineral oils consumed in mineralogical and metallurgical processes will be completely abolished. At the same time, the exemption of gas, electricity and solid fuels from energy tax due their usage in these processes will be abolished. All changes are part of the so-called consolidation package. In some cases, the tax advantage will be maintained, at least partially, through another tax institute.
The amendment to the Excise Duty Act also increases the rates on alcohol and tobacco products and introduces new excise duties on some previously untaxed tobacco and similar products.
Entrepreneurs who use mineral oils for mineralogical or metallurgical processes can claim a refund of excise duty from these oils only if they consume the oils for these activities up to 31 December 2023. After that date, it will be possible to claim a refund of excise duty through the existing refund of excise duty on heat production for those mineral oils which are used for heat production. However, not all excise duty is refunded, but only the tax reduced by CZK 660 per 1,000 litres. Mineral oils which are used for purposes other than heat production or as fuels will be exempted from excise duty under Section 49 (1) of the Excise Duty Act.
The abolition of the exemption of gas, electricity and solid fuels from the energy tax due to using these commodities in mineralogical and metallurgical processes cannot be compensated even partially.
The amendment to the Excise Duty Act also introduces a gradual increase in the rates of tax on alcohol and tobacco products. Certain tobacco and similar products not previously subject to excise duties will be newly taxed.
For more information on the changes to excise or energy taxes, please do not hesitate to contact us.
Authors:
Pavla Polanská, Tax Manager
Marek Šmíd, Tax Junior
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