Agric. Econ. - Czech, 2016, 62(2):51-61 | DOI: 10.17221/31/2015-AGRICECON

Impact of the changes in excise duties on households in the Czech RepublicOriginal Paper

Petr JANSKÝ
Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic and CERGE-EI, Czech Republic

Excise duties are an important source of the government revenue and their rates change relatively often in the Czech Republic. Reforms of excise duties change the prices of goods, a change to which the households respond by adjusting their expenditures. In the contribution, there are used detailed Czech Statistical Office data and the estimates of own- and cross-price and income elasticities for the individual households to create a microeconomic simulation model that enables to simulate the impact of changes in excise duties on the households' demands. There is shown the distributional impact of the current excise duties and then the impact of the hypothetical increases of 10 per cent in each of them is simulated. Further, there is simulated the impact of certain approved or proposed changes in the excise duties including the unsuccessful 2012 proposal to introduce an excise duty on wine.

Keywords: consumer behaviour, excise duties, excise duty on wine, households, tax reforms

Published: February 29, 2016  Show citation

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JANSKÝ P. Impact of the changes in excise duties on households in the Czech Republic. Agric. Econ. - Czech. 2016;62(2):51-61. doi: 10.17221/31/2015-AGRICECON.
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