Czech republic plans tax on carbon emissions

Prague, Czech Republic - The Czech Republic plans to slap a tax of about 30 percent on carbon credits in 2011 and 2012, a higher-than expected rate as the government seeks funds to limit power price hikes due to a solar boom, Industry Minister Martin Kocourek said.

The carbon emissions tax is part of a broader plan the government wants to enact in order to cap household and industrial electricity price spikes at 5.5 percent. The Czech Republic, a country of 10.5 million people, was the third-biggest solar nation in Europe last year in terms of new installed capacity due to an investment boom sparked by generous feed-in tariffs. The government plans to raise 4.8 billion crowns ($268.9 million) from the tax in 2011 and 2012, which will mainly hit majority-state owned power group CEZ, Reuters say. The government has also approved a 26 percent tax on solar plants larger than 30 kilowatts installed capacity and connected to the grid in 2009 and 2010.

Source: IWR Online, 28 Oct 2010