Fuels taxation in the context of tax reforms in the Czech Republic

Jou nal o Tax Re o m. 2023;9(1):34–46 34 eISSN 2414-9497 © K ajňák M., 2023 O iginal Pape h ps://doi.o g/10.15826/j .2023.9.1.127 Fuels Taxa ion in he Con ex o Tax Re o ms in he Czech Republic Michal K ajňák1, 2  1 VŠB-Technical Uni e si y o Os a a, Os a a, Czech Republic 2 Mo a ian Colleague Olomouc, Olomouc, Czech Republic  [email p o ec ed] ABSTRACT The a icle e alua es he de elopmen o he ax bu den and i s in luence on uel consump ion in he Czech Republic in he yea s 2001–2022. Pe ol and diesel a e subjec o uni e sal and selec i e indi ec axa ion. Using he me hods o analysis, desc ip ion, compa ison, syn hesis and eg ession and co ela ion analysis, i is analysed whe he he ax bu den o hese p oduc s is cons an despi e minimal ax e o ms o whe he i is changing. To assess he eal ax bu den, he e ec i e ax a e indica o is calcula ed. Inpu da a o he analysis consis s o a e age uel p ices and ax a es in he analysed pe iod. Compa ed o he i s analysed yea – 2001 and he las analysed yea 2022, he alue-added ax a e inc eased by one pe cen age poin . Selec i e excise du y a es also inc eased by abou 1 CZK., The esul s o he analysis examining he de elopmen o he ax bu den using he e ec i e ax a e show ha he ax bu den on uel is cons an ly changing. Howe e , his is no due o many ax e o ms in his a ea o axa ion. The eason is mainly he uni ype o ax a e o excise du ies. This ac causes he inc ease in he p ice o uel leads o dec ease he pe cen age o ax o he o al p ice o uel, and he ax bu den hus de elops eg essi ely. Excise du ies and alue-added ax ha e a nega i e e ec on consump ion. In he con ex o ax heo ies, one o he easons o he highe ax bu den on uels is he limi a ion o hei consump ion. I can hus be concluded ha in he Czech Republic, hese axes a e ul illed. A he same ime, he high ax bu den c ea es ela i ely s able e enues o he s a e budge . This ac con i ms he impo ance o excise du ies. KEYWORDS diesel, e ec i e ax a e, excise du y, pe ol, ax bu den, ax e o m, alue-added ax JEL C10, H29, H31, K34, Q41 УДК 336.201 Налогообложение топлива в контексте налоговых реформ в Чешской Республике М. Крайнак1, 2 1 Остравский технический университет (VŠB), г. Острава, Чешская Республика 2 Моравский колледж Оломоуц, г. Оломоуц, Чешская Республика  [email p o ec ed] АННОТАЦИЯ В статье оценивается налоговая нагрузка на топливо и ее влияние на потребле- ние топлива в Чешской Республике в 2001–2022 гг. Бензин и дизельное топли- во подлежат универсальному и селективному косвенному налогообложению. С помощью методов анализа, описания, сравнения, синтеза и регрессионно- корреляционного анализа анализируется, остается ли налоговая нагрузка на топливо постоянной, несмотря на минимальные налоговые реформы, или она меняется. Для оценки реальной налоговой нагрузки рассчитывается показа- тель эффективной налоговой ставки. Исходными данными для анализа явля- Jou nal o Tax Re o m. 2023;9(1):34–46 35 eISSN 2414-9497 ются средние цены на топливо и налоговые ставки за анализируемый период. По сравнению с первым анализируемым 2001 г. и последним анализируемым 2022 г. ставка НДС увеличилась на один процентный пункт. Выборочные ставки акцизного сбора также увеличились примерно на 1 крону. Результаты анализа динамики налоговой нагрузки с использованием эффективной на- логовой ставки показывают, что налоговая нагрузка на топливо постоянно ме- няется. Однако это не связано со налоговыми реформами в этой области на- логообложения. Причиной в основном является изменение налоговой ставки по акцизам. Этот факт приводит к тому, что рост цены на топливо приводит к уменьшению доли налога в общей стоимости топлива, а налоговая нагрузка при этом развивается регрессивно. Акцизы и НДС отрицательно сказывают- ся на потреблении топлива. В контексте налоговых теорий одной из причин более высокой налоговой нагрузки на топливо является ограничение его по- требления. Таким образом можно сделать вывод, что в Чешской Республике эти налоги уплачиваются. В то же время высокая налоговая нагрузка создает относительно стабильные доходы государственного бюджета. Этот факт под- тверждает важность акцизов на топливо. КЛЮЧЕВЫЕ СЛОВА дизельное топливо, эффективная налоговая ставка, акциз, бензин, налоговая нагрузка, налоговая реформа, налог на добавленную стоимость 1. In oduc ion Fuels such as pe ol o diesel a e bu dened in hei sales p ice by indi ec axes such as alue-added ax and excise du ies, speci ically ax on mine al oils. Tax e o ms changing ax a es on mine - al oils a e no e y equen in he Czech Republic o many o he Eu opean coun- ies. Howe e , he esea ch ques ion emains whe he he ax bu den o hese commodi ies is also unchanged. In he Czech Republic, he Excise Tax Ac go e ns he axa ion o mine al oils. Nowadays a alid law was c ea ed as pa o he ax e o m on Janua y 1, 2004. Howe e , uel was also subjec o excise du y un il his da e. F om 2004 un il he end o 2022, he p o isions o he law ega ding ax a es changed minimally. The ax e o m in 2010 inc eased he bu - den on bo h commodi ies by CZK 1. In 2021, he excise du y a e o diesel has been educed o he alue o iginally alid in 2004–2009. Due o he inc ease in uel p ices in 2022, he e was a em- po a y educ ion in excise du ies a es on mine al oils by CZK 1.50. Compa ed o o he axes, i can be assumed a i s sigh ha he ax bu den on uel is con- s an and unchanging since ew e o ms we e changing his ax a e. The de elop- men o excise du ies ax a es on diesel o gasoline since 2000 is documen ed in Figu e 1. 0 2 4 6 8 10 12 14 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CZK/l Yea s Diesel Pe ol Figu e 1. Tax a e o diesel o pe ol Sou ce: own p ocessing Jou nal o Tax Re o m. 2023;9(1):34–46 36 eISSN 2414-9497 Mine al oils a e subjec o selec i e ax and uni e sal indi ec ax, i.e., alue- added ax. The e ha e been mo e chan- ges in his a ea compa ed o excise du- ies. Tax a es a ied only in he o de o one pe cen . Mo e de ailed in o ma ion is p o ided by Figu e 2. The a icle aim is e alua ing he de elop- men o he ax bu den on uel in he Czech Republic om 2001 o he end o 2022. A e he e only minimal changes in he ax bu den, o is he eal amoun o he ax bu den changing e en hough no ax e o m has aken place? How does he ax a e a ec uel consump ion? The ol- lowing analysis in his a icle will answe all hese ques ions. In he a icle, he i s analysed yea is 2001, and he las is 2022, ep esen ing a ime se ies o 22 yea s. Such a long ime se ies p o ides a elia- ble basis o pe o ming he analysis. The examined pe iod is also limi ed by he a ailabili y o da a on p ices, o uel con- sump ion, which he Czech S a is ical O - ice has ully published since 2001. Ano he goal is o e alua e he de e- lopmen o uel consump ion – pe ol and diesel in he con ex o he implemen ed ax e o ms a ec ing he uels ax bu den. Does he consump ion o hese uels in- c ease as he ax bu den dec eases? The s uc u e o he a icle is as ollows. The in oduc ion men ions he basic as- pec s o he issue and he esea ch ques- ions. The ollowing sec ion deals wi h an o e iew o esea ch s udies al eady ca - ied ou in his a ea. The main pa is he chap e e alua ing he ax bu den and uel consump ion de elopmen . The inal pa is ocused on summa izing new indings om his analysis. Following he abo e analysis o he cu en si ua ion, i is possible o o mu- la e he hypo hesis ha he ax bu den on uel does no change signi ican ly in he Czech Republic. The eason o his hy- po hesis is only minimal ax e o ms in excise du ies. 2. Li e a u e Se e al s udies ha e analysed aspec s o uel axa ion. Fo example, he p ice elas ici y o uels in connec ion wi h he axa ion o hese p oduc s was examined. Hamma e al. [1] o Damania & F e- d iksson [2] men ions ha uel demand is highly p ice elas ic. I ollows ha i he goal is o educe uel consump ion, he way o achie e his goal is o inc ease he ax bu den. When de e mining he ax bu den, i is necessa y o conside and dis- inguish p ice elas ici y in he sho and long e m [3]. This s udy also men ions he need o conside he speci ica ions and di - e ences o each coun y. This is con i med by he indings o Ghoddusi e al. [4]. The abo e s udies show ha p ice elas- ici y is essen ial in imposing any ax. This elas ici y a ec s he consump ion o he commodi y ha is bu dened by he ax. Acco ding o he conclusions o Ak- kaya & Hepsag [5], on he con a y, he demand o uels is a he a p ice inelas- ic, so an inc ease in he ax bu den on pe ol o diesel does no lead o a d as ic educ ion in consump ion. The ac ha a ax e o m inc easing he uel ax a e may no lead o a mo e signi ican e- 17 18 19 20 21 22 23 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 % Yea s Figu e 2. Tax a e o alue-added ax Sou ce: own p ocessing Jou nal o Tax Re o m. 2023;9(1):34–46 37 eISSN 2414-9497 duc ion in he consump ion o hese p o- duc s is also e idenced by he analyses ca ied ou in esea ch Ha ju e al. [6] o Coglianese e al. [7]. Ha ju e al. [6] among o he hings, emphasize ha he ac o ha de e mines consump ion is, o example, e i o y. The consump ion and p ice elas ici y o uel in a big ci y di e s om he p ice elas ici y in illages. These di e ences a ise especially when he p ice o uel inc eases, and i can ake up o one yea o hese di e ences o balance ou . Coglianese e al. [7] also men ion ha i is necessa y o conside whe he he pos- sible ax e o m will inc ease o dec ease he ax bu den. I , o example, a educ ion in he ax bu den is expec ed, consume s will pos pone uel consump ion. Po che & Po che [8] chose an al e - na i e app oach – he Ma ko -swi ching app oach – when in es iga ing he e ec o he ax bu den on uel consump ion. The conclusions o he analysis indica e ha consume s eac qui e s ongly o an inc ease in he ax bu den on uels. Using he Ma ko -swi ching ap- p oach, Bo oumand e al. [9] con i med ha highe p ice elas ici y is when uel p ices ise. And ha , whe he wi h an in- c ease in he ax bu den o an inc ease in oil p ice. Con e sely, uel selle s and con- sume s eac less lexibly o a dec ease in he ax bu den o oil p ices. One o he easons o applying excise du ies, in gene al con ex o ax heo ies, is he educ ion o he consump ion o ha m- ul p oduc s. The consump ion o uel is cha ac e ized acco ding o Pa y e al. [10] by ce ain ha m ulness, and hus i can be s a ed ha he goal o a highe ax bu den is he educ ion o consump ion. S inson e al. [11] men ion ha i is also possible o app oach he cons uc ion o excise du ies in an al e na i e way. This consis s o he exis ence o ax ad an ages and elie s. Howe e , his app oach has no been widely adop ed in he ield o ex- cise du ies, which is also e idenced by he esul s o he Da id [12]. Da id [12] also disco e ed ha he amoun o excise du ies canno be im- posed p ecisely in he amoun o damage caused by he consump ion o a speci ic commodi y bu dened wi h an excise ax. In ha case, he ax bu den would ha e o be ou imes g ea e . Kam uzzaman & Mizunoya [13] in- es iga ed he e ec o uel axa ion on consump ion in Bangladesh. I was ound ha by axing uels, hei consump ion de- c eased by app oxima ely one- i h. Simila conclusions ega ding he e ec o uel axa ion on uel consump- ion in China we e ound by Xiao & Ju [14]. The e ec s o uel axa ion on con- sump ion we e also analysed by o he s udies, e.g., in Japan by Tanishi a [15], which also s a es ha he ax bu den on uels educes hei consump ion. Despi e his ac , howe e , uel consump ion is de eloping in an inc easing end. The s udy does no ag ee wi h he idea o an al e na i e app oach, e.g., in he o m o ax elie s o highe axa ion o ca s, o example, s a ed by [11]. S udies analysed uel axa ion om a mo e comp ehensi e pe spec i e o se e al coun ies, e.g., in he coun ies o he Eu opean Union we e also done. Ac- co ding o Kan a ci [16], he a e age ax bu den on gasoline in he coun ies o he Eu opean Union is a ound 66%, and on diesel a ound 61%. Shao e al. [17] also men ion a high ax bu den, which, on he one hand, is bene i- cial o limi en i onmen al ha m. On he o he hand, such a high ax bu den can e- duce economic g ow h. Fukui & Mioyshi [18], analysing he e ec o uel axa ion on consump ion in he USA, s a es ha when he ax bu den inc eases, consump ion o hese uels de- c eases in he sho e m. On he con a y, when assessing hese e ec s in he long e m, he dec ease in consump ion is less signi ican han in he sho ime. Go dee & Galee a [19] in es iga- ed uel axa ion in Russia. An inc ease in excise du y by abou 0.4 ubbles pe li e would be e lec ed in a dec ease in con- sump ion by abou 1%. As Bje naes [20] men ioned, ecologi- cal aspec s should also be conside ed a legisla ion o uel axes. In p ac ice, as he s udy s a es, his would mean a educed Jou nal o Tax Re o m. 2023;9(1):34–46 38 eISSN 2414-9497 ax a e o ehicles wi h lowe a e age uel consump ion. Acco ding o Shao e al. [21], ano he way o inc ease he ax bu den o hese commodi ies h ough indi ec axes could be s imula ing he beha iou o economic subjec s owa ds ecologically desi able ac i i ies in he o m o subsidies. Du ing e o ms dealing wi h uel axa ion, i is desi able o discuss acco - ding o esul s Ca alho & Guillen [22] no only he issue o ax a es. Tools o chan- ging he consump ion o commodi ies can be, o example, he elimina ion o cases in which he use o i ems such as pe ol o diesel is exemp om excise du ies. Hájek e al. [23], using mul i-panel e- g ession analysis, ound ha emission al- lowances a e a ool o limi he consump ion o en i onmen ally ha m ul commodi ies. Du ing ax e o ms changing he ax bu den o excise du y commodi ies, he go e nmen mus conside he commodi- y’s ax bu den and he impac on s a e budge e enues and adjus he ax mix acco dingly. This is also ela ed o changes in o he di ec o indi ec axes. Janoušk- o á & Sobo o ičo á [24] ound ha , o example, land axa ion in he Czech Re- public is e y low compa ed o o he coun ies. Municipali ies ha e he op ion o applying coe icien s o inc ease ax e enue. Howe e , only app oxima ely 10% o municipali ies use his op ion. The esul s o he s udy by And e- jo ská & Glo a [25] show ha a high ax quo a can ha e a nega i e e ec on economic g ow h. The e a e cases when a highe ax bu den is jus i ied, e.g., by he exclusi i y o a ac i eness o a speci ic place o p oduc . Tho oli & Mama i [26] men ion ha when se ing up new axes o changing exis ing ones, communica ion be ween he go e nmen and ci izens is necessa y so ha ci izens unde s and he meaning and pu pose o he ax changes. F om he o e iew o esea ch s u- dies, i ollows hose uels, unlike e.g., basic oods u s, a e cha ac e ized by a highe ax bu den. This ax bu den ensu es s able ax e enue, on he o he hand, i also limi s uel consump ion. Limi ing uel consump ion is posi i e om an ecological poin o iew, bu i can cause a educ ion in economic g ow h. Thus, s udies con i m ha he e is dependence be ween uel consump ion and he le el o axa ion. 3. Da a and Me hodology 3.1. Da a The inpu da a o he analysis is a da- abase o he pe iod om 2001 o 2022. The a ailabili y o da a limi s he analysed pe iod. To ul il he objec i e o he a icle, he ollowing da a a e used o analysis: 1) A e age p ice o diesel and pe ol1; 2) Diesel and pe ol consump ion in analysed yea s2; 3) Excise du y a es o diesel and pe - ol, and alue-added ax a es. The a e age p ice o diesel, pe ol and he consump ion o diesel and pe ol we e ob ained om he abo e sou ces. Value added ax a es om he applicable Value Added Tax Ac , pe ol, o diesel ax a es om he Excise Ac . The o al ax bu den o 1 li e o diesel o pe ol was also calcu- la ed o analysis pu poses. Fu he mo e, he e ec i e ax a e was de e mined. 3.2. Me hodology The a icle uses s anda d scien i ic me hodology including me hods o de- sc ip ion, analysis, syn hesis, and com- pa ison. To assess he eal ax bu den on pe ol, o o diesel, he e ec i e ax a e indica o (1) is used, , VAT ED i TT ETR P + = (1) whe e ETR is he e ec i e ax a e, TVAT is alue-added ax, TED is excise du y and Pi is he p ice o 1 li e o uel in an analysed yea . In con as o he nominal ax a e, i is possible o display he eal ax bu den using he e ec i e a e indica o [27; 28]. 1 A e age p ice o Pe ol and Diesel. P ague: Czech S a is ical O ice, 2023. A ailable a : h ps:// www.czso.cz/csu/czso/ceny-pohonnych-hmo - od- oku 2 Consump ion o Diesel and Pe ol. P ague: CEPRO, 2023. A ailable a : h ps://www.cappo. cz/cisla-a- ak a/spo eba-pohonnych-hmo - -c Jou nal o Tax Re o m. 2023;9(1):34–46 39 eISSN 2414-9497 The ax a e on diesel and pe ol is o uni ype, while he alue-added ax a e is o ad- alo em ype [29; 30]. To de e mine whe he he ax bu den on uel is cons an , p og essi e, o eg essi e acco ding o he de elopmen o he p ice o a li e o uel, can be o mula ed (2–4), , HL ETR ETR< (2) , HL ETR ETR> (3) , LH ETR ETR= (4) whe e ETRH is he e ec i e ax a e ex- p essing he ax bu den on uel a a hig- he selling p ice, and ETRL is he e ec i e ax a e a a lowe selling p ice. I equa- ion (2) applies, he ax bu den de elops eg essi ely. Equa ion (3), on he con a- y, con i ms he p og essi e de elopmen o he ax bu den. Equa ion (4) shows he cons an de elopmen end. Modelling he dependence o uel consump ion on he ax bu den o excise du y and alue-added ax will be pe - o med using eg ession analysis [31; 32]. The equa ion exp essing he dependence o pe ol consump ion on excise du y and alue-added ax is de e mined by he o - mula (5), 0 11 22 ,Yb bX bX=+⋅ +⋅ (5) whe e Y is he amoun o he pe ol con- sump ion, X1 is he amoun o excise du y on pe ol pe 1 li e and X2 is he amoun o alue-added ax pe 1 li e o pe ol. The dependence o diesel consump ion on he amoun o excise du y on diesel and alue-added ax can be exp essed simila - ly. I is cap u ed by equa ion (6), 0 11 22 ,Yb bX bX=+⋅ +⋅ (6) whe e Y is he alue o diesel consump- ion, X1 is he amoun o excise du y on diesel pe 1 li e, and X2 is he amoun o alue-added ax on 1 li e o diesel. 4. Resul s 4.1. Desc ip i e s a is ics Be o e pe o ming he dependency analysis, a sec ion con aining he basic desc ip i e s a is ics o he analysed a- iables in Table 1 is so ed, i.e., he p ice o diesel, he p ice o pe ol, he con- sump ion o diesel, he consump ion o he pe ol, he a e o excise du y pe li e o diesel, he a e o excise ax pe li e o pe ol, he alue- added ax on 1 li e o diesel, o he alue-added ax on 1 li e o pe ol. 4.2. E alua ion o he de elopmen o he ax bu den on uel Fuels such as pe ol and diesel ha e he same ax a e in he con ex o uni e - sal indi ec ax – alue-added ax. Wha di e s, on he o he hand, is he excise du y a e. Fo bo h commodi ies, i is o he uni ype, bu i s amoun is di e en . Diesel has a lowe a e. F om he poin o iew o alue-added ax, he s anda d ax a e is applied o he en i e analysed pe- iod 2001–2022. F om 2001 o 2003, i was 22%. In 2004 dec eased o 19%, om 2013 o he p esen , he a e is 21%. Table 1 Desc ip i e s a is ics Uni Mean Value Median Minimum Maximum P ice o diesel CZK/Li e 30.173 30.03875 21.743 43.438 P ice o pe ol CZK/Li e 30.885 30.27 24.364 41.743 Consump ion o diesel Kilo ons 4145.227 4125.5 2561 5154 Consump ion o pe ol Kilo ons 1790.591 1783.5 1468 2103 Ra e o excise du y o diesel CZK/Li e 10.170 10.45 8.15 10.95 Ra e o excise du y o pe ol CZK/Li e 12.260 12.84 10.84 12.84 Value-added ax o diesel CZK/Li e 6.168 6.072 4.734 9.122 Value-added ax o pe ol CZK/Li e 6.318 6.170 5.089 8.766 Sou ce: own calcula ion Jou nal o Tax Re o m. 2023;9(1):34–46 40 eISSN 2414-9497 Assessing he ax bu den only based on nominal ax a e alues is inco ec . Be e epo ing powe is p o ided by he e ec i e ax a e. The de elopmen o hese a es o pe ol and diesel is shown in Figu es 3 and 4. The ax bu den on pe ol has changed in he analysed pe iod. Tax e- o ms inc easing he a e o excise du y on pe ol ook place in 2004 and 2010. Despi e his ac , when he nominal ax a e inc eased, he eal ax bu den, on he con a y, dec eased. The mos signi ican dec ease occu ed a he end o he ana- lysed pe iod. In 2022, on he o he hand, he excise du y a e was educed, and he pe ol p ice inc eased simul aneous- ly. These ac s caused he eal ax bu - den o all. Con e sely, he alue-added ax bu den in pe cen age e ms emains almos unchanged o e he analysed pe iod. Also, he esul s p esen ed in Fig. 4 con i m ha he ax bu den on diesel does no change linea ly. The excise ax e o m be ween 2003 and 2004 inc eased he a e o excise du y on diesel, which also led o an inc ease in he e ec i e ax a e. On he con a y, he alue added ax a e was educed by h ee pe cen age poin s. This ac caused he o e all ax bu den on die- sel o dec ease. In 2010, he a e o excise du y on diesel was inc eased by CZK 1. Pa adoxi- cally, he e ec i e ax a e has dec eased. Nominal ax a e was unchanged un il he end o 2020. Ne e heless, acco ding o Fig. 4 he e a e changes in he eal ax bu - den. The eason o his is he ac ha i is a uni - ype ax a e. Thus, he ax bu den o 1 li e o uel does no change only in e ms o an absolu e igu e. A ac o sig- ni ican ly a ec ing he alue o he e ec- i e ax a e is he p ice o his p oduc . 0 10 20 30 40 50 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ETR in % Yea Pe ol Tax ETR VAT ETR Figu e 3. ETR pe ol Sou ce: own calcula ion 0 10 20 30 40 50 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ETR in % Yea Diesel Tax ETR VAT ETR Figu e 4. ETR diesel Sou ce: own calcula ion Jou nal o Tax Re o m. 2023;9(1):34–46 41 eISSN 2414-9497 I bo h e ec i e ax a es ( alue-added ax a e and excise du y a e) we e added oge he , he alue o he o al e ec i e ax a e o pe ol would be close o 60%, and o diesel a ound 55%. In he case o pe - ol, hese a e alues ha a e also common in o he coun ies, in he case o diesel, he ax bu den is sligh ly lowe . On a e age, he ax con ibu es o he p ice o uel, ac- co ding o he esul s o Kan a ci e al. [16] a ound 60%. Using he co ela ion analysis in Table 2, i will be e alua ed whe he he e is a dependence be ween he e ec- i e ax a e and he p ice o pe ol and diesel. I con i med, i will subsequen - ly be de e mined whe he his depen- dence is di ec i.e., he ax is p og essi e o indi ec , indica ing he eg essi e cha ac e o he de elopmen o he ax liabili y. F om he da a o he co ela ion ma- ix p esen ed in Table 2, i ollows ha he e is an indi ec deg ee o e y high dependence be ween he p ice o he commodi y – pe ol and diesel and he e ec i e ax a e. As he p ice o each li e o uel inc eases, he eal ax bu den hus dec eases. And his is al hough no ax e o m adjus ing ax a es ook place. Fo his eason, he o e all ax bu - den on uel is de eloping eg essi ely. Con e sely, i he e is a dec ease in uel p ice, he pe cen age o ax on he p ice inc eases. The eason is ha he amoun o excise du y emains he same in abso- lu e e ms. Thus, when he p ice inc ea- ses, only he alue-added ax inc eases absolu ely, he same when i dec eas- es, only he alue-added ax dec eases absolu ely. Table 2 Co ela ion analysis Diesel p ice Pe ol p ice ETR diesel ETR pe ol Diesel p ice 1 Pe ol p ice 0.986 1 ETR diesel –0.855 –0.844 1 ETR pe ol –0.887 –0.887 0.975 1 Sou ce: own calcula ion 4.3. E alua ion o he impac o he ax bu den on consump ion The esul s o he pa ial analysis showed ha , al hough ax e o ms in uel axa ion we e a e, he ax bu den was di - e en in he analysed yea s. No only he ax bu den changed, bu also he olume o uel consump ion. The esea ch ques- ion o his pa is whe he his ax bu den a ec s he le el o uel consump ion. The answe o his ques ion is p o ided by he esul s o he eg ession analysis in Ta- ble 3. The dependence o pe ol o diesel consump ion on he ax bu den o excise du y and alue-added ax is analysed. Table 3 Reg ession analysis Model 1 – Diesel Model 2 – Pe ol Coe . Sig. Coe . Sig. X1 – Value- added ax –281.8 0.018 –105.6 0.007 X2 – Excise du y –417.8 0.003 –145.09 0.005 Cons an 1842.01 0.122 4236.9 0.001 Obse a ion 22 22 R20.790 0.832 F- es 15.8 0.001 21.3 0.001 Du bin-Wa son es 1.880 1.918 Sou ce: own calcula ion In he case o model 1 exp essing he dependence o diesel consump ion on he ax bu den, he equa ion has he o m (7), 12 281.8 417.8 1842.01.y xx=− − + (7) In he equa ion, bo h a iables a e s a is ically signi ican . The R2 coe icien exp essing he quali y o he eg ession model indica es ha he model desc i- bing he dependence o diesel consump- ion on he ax bu den is o su icien quali y. The alue o he F- es and he esul o he Du bin-Wa son es a e also s a is ically in acco dance wi h he equi emen s o eg ession modelling. Mo e abou he F- es e.g. [33], abou he Du bin-Wa son es e.g. [34]. In acco - dance wi h he ecommenda ion o O’Go man o Pinelis [35; 36], a signi i- cance le el o 5% is chosen. Jou nal o Tax Re o m. 2023;9(1):34–46 42 eISSN 2414-9497 I ollows om equa ion (7) ha he ax bu den on uels educes hei con- sump ion. This can be s a ed based on he nega i e alues o he coe icien s Xn in he equa ion. Rega ding he s eng h o he e ec on consump ion, his alue is highe o he excise du y. This conclusion is logical since excise du y also had a high- e e ec i e ax a e han alue-added ax. The s a ed esul s ag ee wi h he esul s o s udies [14; 21; 37]. The model o he dependence o pe - ol consump ion on he ax bu den is cap- u ed by equa ion (8), 12 105.6 145.09 4236.9.yxx=− − + (8) The conclusions o he analysis e- ga ding he e ec o axa ion on pe ol consump ion a e iden ical o he esea ch ega ding diesel. Value-added ax and ex- cise du y educe his consump ion. Again, a highe nega i e e ec is demons a ed o excise du y, as coe icien X2 inc eases mo e han coe icien X1. On he con a y, wha is di e en be ween equa ions (7) and (8) a e he a- lues o hese coe icien s in he eg ession equa ions. Taxa ion o diesel has a mo e signi ican e ec on consump ion han pe ol. This is ela ed o he di e en p ice elas ici y o demand o pe ol and diesel [38]. The conclusions hus ag ee, o example, wi h he s udy by Tang & Sjo- quis [39] ha he e ec s o he same ax on di e en uels may no be he same, e en i he p inciple o how he ax wo ks is simila . One o he easons why his ax is pa o he ax sys em is o limi he consump ion o pe ol o diesel [40], which, as he esul s o his analysis con- i m, is ul illed in he case o he Czech Republic. 5. Discussion Excise du y and alue-added ax make up mo e han hal o he inal sales p ice. In he con ex o compa ison wi h o he coun ies, i was ound ha he Czech Re- public does no show signi ican ly highe o lowe alues in his ega d. The abo e can be compa ed, o example, wi h he e- sul s o he s udy Kan a ci [16]. Especially ax bu den o pe ol is a a simila le el o o he OECD coun ies. A s udy in es iga ing he uel ax bu den in he con ex o consump ion in he Czech Republic has no ye been con- duc ed. Howe e , he esul s ound can be compa ed wi h hose o o he s udies. The eg ession analysis esul s con i med ha excise du y, pa icula ly, impac s uel consump ion and ha he ax bu den is a ac o in educing his consump ion. These esul s ag ee wi h s udies [1; 10]. On he con a y, hese conclusions de- ia e om he indings o s udies [5–7]. I is p ecisely he high ax quo a o pe ol and diesel ha aims o limi he consump- ion o hese uels. I mus be emphasized ha he educ ion o his consump ion is no only due o excise du ies bu also o alue-added ax. Al hough, as he analysis esul s show, he alue-added ax’s e ec on educing consump ion is smalle . In he con ex o he uel ype, he ax bu den has a highe impac on diesel consump- ion han pe ol consump ion. This is alid al hough ax a e o diesel is lowe han ax a e o pe ol. I is hus also possible o iden i y wi h he conclusions o s udies [13–15]. I is also necessa y o conside ha diesel and gasoline do no ha e he same de- g ee o p ice elas ici y o demand, which ag ees wi h he s udy’s conclusions o Akkaya & Hepsag [5]. Based on he da a on he de elopmen o uel consump ion, i is in acco dance wi h he conclusions Bo oumand e al. [9] abou he di e en deg ees o p ice elas ici y when uel p ices ise and all. The ela i ely high ax bu den on uel can be iewed om wo poin s o iew. One o hem is he ac ha he high ax bu den limi s he consump ion o hese p oduc s. This is a posi i e om an eco- logical poin o iew. Howe e , he con- clusions o s udies [20-22] demanding conside a ion o en i onmen ally iend- ly beha iou ha e no ye been imple- men ed in o he ax legisla ion egula ing his a ea o axa ion. Cu en ly, he e a e no plans o im- plemen discoun s o ax bonuses in o he legisla ion go e ning excise du ies.