People wave national flags as they protest against Czech government at Wenceslas Square in Prague, Czech Republic, September 3, 2022. According to Czech police, 70,000 people attended a protest calling for the government to resign, while demanding mitigation of the energy crisis and repair of the damage. Photo: VCG

The Czech government approved a price cap for electricity and gas after an extraordinary meeting on Monday evening.

According to Prime Minister Petr Fiala, households and businesses will pay a maximum of six Czech crowns (25 cents) per kilowatt-hour (kWh) of electricity, and a maximum of three crowns per kWh of gas, both of which include value-added tax.

Finance Minister Zbynek Stanjura put the impact on the state's budget at an estimated 130 billion crowns. These costs could be covered by revenues from state-owned companies, a newly proposed windfall profit tax and revenues from emission allowances, he said.

The minister added that the new windfall profit tax discussed on Monday by the government could cover up to 70 billion crowns alone by 2023. However, the implementation of this tax must take into account a similar tax discussed at the EU level, which the European Commission is expected to present this week.

Inflation in the country finally slowed down after 13 months to a year-on-year rate of 17.2 percent in August, according to figures published by the Czech Statistical Office on Monday. But it is still well above the Czech National Bank's tolerance band. 

On September 3, an estimated 70,000 people descended on Wenceslas Square in Prague to protest against rising energy prices and called for the mitigation of the impact of the energy crisis.

Xinhua