Podcasts Other Radio Prague International - Topic «Business» Economist: Cutting VAT on fuels will only stimulate demand and help finance Russias war in Ukraine

Economist: Cutting VAT on fuels will only stimulate demand and help finance Russias war in Ukraine

Published: April 7, 2022, 11:30 a.m.

In an effort to curb soaring fuel prices in the country, the Czech government on Wednesday approved a VAT cut on petrol and diesel by 1.50 CZK a liter from the beginning of June to the end of September. The move was made under growing pressure from producers and haulers who have been calling for a VAT cut on fuels for some time. I asked David Marek, chief economist at Deloitte Czech Republic, for his take on the decision.