Mediafax (Mediafax)
Taxes and Accounting  |  3.10.2012 9:55:06

House Budget Committee postponed consideration of the tax package


PRAGUE (MEDIAFAX) - Consideration of a tax package that includes, for example an increase in VAT rates by one percentage point, put at their meeting yesterday Budget Committee of the Chamber of Deputies. Its members to decide the fate of the proposal for a week.

"Negotiations on the tax package postpone the October 10, any amendments will be accepted to October 8, the Ministry of Finance to have more time to think through any changes," said Budget Committee Chairman Paul Suchanek (ODS).

The proposal provides that the value added tax for the next three years rose by one percentage point to 15 and 21 percent, and those with incomes above 100,000 crowns a month to siphon the new seven percent tax. The package of measures also limit spending packages for business owners, the abolition of the tax credit on income for working pensioners or end caps on deductions for health insurance.Package of tax changes also envisages limiting so-called green fuels, increasing the real estate transfer tax and withholding tax.

"The consolidation package is not the only way to help the Czech economy," said Pavel Bem, who also agreed to provide additional time for the Ministry of Finance proposed amendments.

Also, according to another member of the Budget Committee Mark Šnajdr (ODS) design was interrupted at this point the only way to avoid its repeated rejection.

Budget Committee member Peter Braný (Communist Party) said they hesitated whether to support the suspension of negotiations on next week. "From my perspective, this material is still impossible to approve. Best of all political opponent defeat his own weapons. Ahead So colleagues, I look forward to hearing your amendments," said Bran.

"I'm not, and no one can argue that raising taxes is the only way to get the Czech economy popasovat their problems. Nevertheless, if we adopt the budget, which will take effect from 1 January 2013, so there was too much room for political agreement is not. Therefore, approval of this package is currently necessary in order to adopt the budget without temporaries, "said Deputy Finance Minister Ladislav Minčič.

Package that cabinet Petr Necas (ODS) combined expression of confidence in the government and remained in the budget committee. If it were dismissed following the legislative process, and the government would thereby not trust expressed, submitted in accordance with the premiere of his earlier words cabinet resign.

"The Government of the Czech Republic considers this bill would be extremely crucial in relation to the draft state budget for 2013. Reasons why the Czech Government resorted to the use of this institute, which has so far not been used in 20 years of the Constitution of the Czech Republic, ie merged with the discussion of the proposal their trust, "he is heard in the previous debates Necas.

Finance Minister Miroslav Kalousek (TOP 09) threatened that if the law is not approved, will fail to compile a budget for next year, which complied with the public deficit at below three percent of GDP. Since the package is receiving government promises additional 25 billion crowns.

Consolidation package has previously rejected the Senate and the coalition failed his negative opinion of the Chamber of Deputies overruled, since from the ODS deputies opposed the proposal stood Ivan Fuksa, ThomasÚlehla, Radim Fiala, Mark Šnajdr, Jan Florian and Peter Tluchoř.

Rebellious ODS prefer to next year's VAT remained at the same level as this year. Government package yet allows for an increase in interest rates by one percentage point. According Tluchoř the most glaring problems in the package just change VAT tax millionaires and "punishment" active pensioners and businessmen. The government, they say, was to seek the necessary funds elsewhere, especially on the expenditure side of the budget.

ODS is also at a meeting of his club agreed to eightfold of working group on changes to rebel MPs currently is. Possibly modified form of consecrated and coalition partners would like to approve the ODS in the second and third reading at the 23rd meeting of the Chamber of Deputies October.Finance Minister Miroslav Kalousek (TOP 09), however, long-term claims that the scope for changes in this proposal is really minimal.

Against fiscal package stand out sharply deputies of opposition parties. CSSD chairman Bohuslav Sobotka about it during the debate on the first reading he referred to "zdražovacím package" that the ODS could not even have out internally and which arose based on sound economic analysis. According to him, it is unlikely that they could choose between changing taxes for the state as much money as he imagines the Ministry of Finance.

"I think that in a civilized society in a civilized country should not be the case that the reforms implemented as experiments that attempt to operate the system - a mistake," said Sobotka. In his opinion, the right-wing reforms devised on the knee, without sufficient expert background and argue only politically.

Jan Soukup, soukupj@mediafax.cz

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