In Czechia, as well as in most Central and Southern European EU states, still wines are not subject to consumption tax. However, with the ongoing need to balance the budget, government experts have suggested introducing precisely such a tax, arguing that it could bring CZK 2 to 5 billion crowns into state coffers. This has angered the country’s winemakers who say that it would not just hit them hard in times of crisis, but also place a long tradition under threat.
Along with sparkling wine, still wine is currently the only alcoholic beverage in Czechia that is not subject to the so-called consumption or excise tax. In practice, this means that winemakers are not charged by the state if they produce fewer than 2,000 litres of wine per calendar year.
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Author: Thomas McEnchroe