5th December 2016

Government: Analysis of Profit Outflows: Impact on the Czech Economy and Proposed Measures

The Office of the Government of the Czech Republic published Analysis of Profit Outflows: Impact on the Czech Economy and Proposed Measures, an analysis of foreign direct investment trend and profits outflows form the Czech Republic. The study falls under the framework of the Action Plan for the Support of Economic Growth and Employment in the Czech Republic. The Czech Republic is also facing a decrease in the inflow of foreign investment, on which it is dependent to a significant extent. Prime Minister Bohuslav Sobotka (ČSSD / Social Democrats) said that in the nearest future he wanted to start a discussion about possible measures and solutions for this situation, ČIANEWS wrote.

The analysis identified specific sectors of the economy where the profit outflows were the highest, including the energy and the water management sectors, or telecommunications. "There is a room for a more effective regulatory system, as the current system does not motivate enough to reinvest profits and thus enables their high outflows", the Government report says. Other issues that should be discussed in the future is a "fair tax mix", functioning of the EU Single Market and the low wage level in the Czech Republic. Read more (in Czech)

Members of the American Chamber of Commerce in the Czech Republic