2nd July 2014

Changes in taxes and fees

During its meeting on 2nd July Government agreed on several changes of taxes, duties and fees that were part of the coalition agreement and government programme proclamation. First of them was change in the system of healthcare using Act on Public Health Insurance. As of 1st January Government cancelled so called “regulation fee” for prescription and for outpatient treatment. However, the Government agreed that fee for emergency treatment and emergency treatment of a dentist of 90 CZK will stay. Government also agreed on second reduced VAT rate of 10 % on medicines, books and irreplaceable baby food. The Cabinet also approved higher tax credit for second and third child along with reintroducing tax credit for the pensioners. For parents the government reintroduced birth allowance for the second child in the amount of CZK 10 000 with raising the income coefficient for the families from 2.4 to 2.7 times subsistence minimum. As of 1st January 2015 Government also corrected flaw in act regulating social accommodation by defining appropriate accommodation.

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Members of the American Chamber of Commerce in the Czech Republic