EZ shares lost a fifth of their value, thanks to tax speculation | Business

This step is often considered a mistake by experts. From the beginning of the year to the April peak, EZ shares on the stock exchange gained 47 percent, since then they have written off eighteen percent.

The share price is down mainly due to the tax on extraordinary profits. High energy prices create political darkness, so there is a certain probability that the government will introduce some form of additional taxes. This, of course, increases the attractiveness of the country as a destination for foreign investment, said Cyrrus analyst Tom Pfeiler.

According to him, EZ shares currently have a bright growth potential, but are subject to a number of risks. For example, suspending the supply of Russian gas would trigger a price drop, he added.

BH Securities analyst tpn Keek considers communication about any new tax and its eventual introduction to be a mistake. According to him, politicians especially do not realize that with their words they influence the price of the share and have caused significant losses to many investors. By introducing a new type of sector tax, we will also open Pandoin’s market. Politicians will then get their hands on a tool that they could use to extort companies from various industries in the future, he said.

The development of the EZ action shows the unprofessionalism of the government coalition, which, according to Prime Minister Petr Fiala, agreed on taxing the extraordinary profits of energy companies, according to XTB company analyst tpn Hjek. According to him, the government can manipulate the price of a company’s share so that it can later generate a full EZ price for it.

This year, EZ will collect the profit from the pre-sale of electronics for the last two years, there will be nothing to tax here. As far as income to the state treasury is concerned, given the company’s future profits, there is no suitable option other than to increase the dividend, said Hjek.

The government should prepare a full restructuring of the state energy company EZ by the middle of the fifth year, Fiala said two weeks ago. But he did not give details. In his televised address in April, he said that in the near future the state wants to control the whole of domestic power plants, i.e. its own production of electronics.

The cabinet is discussing the introduction of an extraordinary tax on unexpected profits for companies, which would help people with the current high increase in energy prices. Some representatives of the government coalition stated that the profits would be taxed, which, for example, energy companies do not have the merit of their initiative or innovations. The price of energy will rise, among other things, due to the Russian invasion of Ukraine.

EZ owns seventy percent through the Ministry of Finance, the rest is held by private shareholders.

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