Vladimír Urbánek (Kurzy.cz)
Taxes and Accounting  |  September 06, 2012 17:04:37

Uncertainty about the tax harms Czech companies even more than if he had finally decided

The continuing uncertainty about the future development of both VAT rates complicates life for Czech firms. After yesterday's fiasco, when voting on the consolidation package is a real danger of the situation, that the final decision by the end of the year does not fit at all. Then it should have applied the law passed last year, that is from 1 First 2013 to unify the two rates of VAT at 17.5%.

In opinion of business leaders in the area of construction and development are two possible options, ie both increase both rates by 1 percentage point, and the unification of the two rates to 17.5%, solutionsbad. Both outside does mean higher prices of basic foodstuffs and medicines as well as other more expensive new housing. The negative impact of such changes on the demand can then cause further decline in construction contracts, which will lead to further layoffs.

"The government, unfortunately, do not realize that the continual discussion of changes in such a fundamental parameter such as VAT, significantly complicate the lives of most Czech firms and businesses. Personnel policy, investment planning, cash flow, negotiating long-term contracts with suppliers and much more - all must deal with the Czech company in advance.In a situation where they pay anything but will pay tomorrow, but it's impossible, "says Eugene Korec, CEO and chairman of a leading Czech developer EKOSPOL.

The solution? Not to increase taxes at all and instead of being responsible stewards

However any tax increases would not be at all Korce, if the state played the role of responsible landlords. "Unfortunately, the more more money into eráru chooses the more well controlled or uncontrolled manner stolen. In order to save money, and certainly in the consumption of the state as such, and not collecting more money into the state budget. Space savings overpriced procurement, is still considerable, "says Eugene Korec.

Ing. Daniel Donoval
director of marketing sector, as EKOSPOL

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Nejistota ohledně DPH škodí českým firmám ještě více, než kdyby se už konečně rozhodlo

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