Draught beer set for VAT increase in Czech Republic

The VAT rate on draught beer is set to increase from 10% to 21% in the Czech Republic on 1 January, in a move that the government hopes will add an additional CZK 97 billion to the state budget in 2024.

In 2025, the government is hopeful that the measure will add an additional CZK 150 billion.

In addition to inflation, rising energy prices and higher wages, the price of draught beer in the country – which is among the cheapest in Europe – is expected to rise by around CZK 5, or around €0.20.

‘Location, demand and supply’

“Prices will be determined by the market, the situation will vary by location, demand and supply,” Luboš Kastner of the Czech Association of Small and Medium Enterprises and Entrepreneurs was quoted as saying by representative group SOCR.

Beer has already increased in price during 2023, by between CZK 1 and CZK 1.5 on average, as a result of increased costs.

Average cost of a beer

Based on information provided by Dotykačka, a Czechia-based cash register operator, the average cost of a draft beer has surpassed CZK 50.

Unsurprisingly, Prague tops the list as the most expensive, with an average price of CZK 62.90 for a draught beer, while the Moravian-Silesian region is the most economical, with an average price of CZK 46.40.