The 2010 budget passed by Parliament increases excise taxes on hard alcohol, which will result in consumers having to pay more for spirits. The tax hike requires distilleries to pay an additional CZK 20 per liter of pure alcohol sold, a price tag that will be passed on to consumers. At retail, a 1-liter bottle of liquor containing 40% alcohol will increase an estimated CZK 6. Set to take effect in the new year, the tax hike has angered producers and distributors, who say the higher prices will weaken demand and lower sales.
