At its session on 18 September, the Chamber of Deputies passed changes in the system of taxation that the Government proposed in May 2012. By increasing the VAT rate (up to 21 %) and income tax in high-income range (there is an increase of 7 % up to 22 %), the Bill primarily aims at reducing the state budget deficit.
The amendments have already been passed by the Senate; however, the president refused to ratify the Bill at the end of August 2012. The main objection of the president (as well as some dissenting deputies in the governmental camp) states that the tax increase would deteriorate economical situation of the Czech Republic. The Government has put forward the same set of amendments and that have been discussed together with the vote of confidence. The Government has succeeded in passing the Bill for the Chamber of Deputies passed the Bill in the first reading. Amendments are heading to the second reading in which the Budget Committee will discuss the Bill further.
For further information regarding the re-discussion of the Bill, click here.
5th February 2018