TNBiz (TNBiz)
Finance  |  September 10, 2010 12:51:01

The government is considering taxing photovoltaic power plants, said Minister Kocourek


Mediafax

PRAGUE (MEDIAFAX) - The government is considering taxing photovoltaic power plants as one of the measures against the increase in electricity prices due to the solar boom. He said on Friday Minister of Industry and Trade Martin Kocourek (ODS) after meeting with President Vaclav Klaus.

The government Kocourek considering two possible scenarios. The first would occur if the prices for electricity rose by 10 percent. This scenario is called absorption and would apply only to regulatory mechanisms, the nature of the minister did not elaborate.

The second scenario, which the government says extensive, would be used if prices should rise by more than 10 percent. "In this case, were probably used as tax instruments," said Kocourek.

"We are considering alternative capital gains tax on photovoltaic power plants with total proceeds of this tax would go to a special heading in the chapter General Treasury Administration. Thus obtained were determined by means of distribution companies as cover a portion of the cost of purchasing energy from renewable resources," explained the minister.

The government also wants to create the Coordination Monitoring Committee, which will be composed of experts and will assess the situation around the promotion of electricity from renewable sources. Based on the outcomes of the Cabinet Committee also decide which of the scenarios used.

Kocourek also wants to bring as soon as the government amend the law on promotion of electricity from renewable sources. They should also have power to promote and support agricultural land would cover only the solar panels on roofs.Also be abolished tax exemption for renewable energy, which is already included in the draft bill on income tax, prepared by the Ministry of Finance.

"The President said that he understood our progress, but we should be tougher," said Kocourek. What concrete measures, President Klaus has suggested Kocourek did not elaborate.

Minister Kocourek was in the order of the seventh member of Prime Minister Petr Necas (ODS), which received the President at the Prague Castle. He wants to become familiar with the ministers and their work in various ministries.

George Taborsky, taborsky@mediafax.cz

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