TNBiz (TNBiz)
Taxes and Accounting  |  October 14, 2012 13:53:49

ELECTION 2012 - Opposition in the Senate will vote against the higher rate of VAT

PRAGUE (MEDIAFAX) - Opposition parties, which strengthened after the election in the Senate, intend to apply for deferral of pension reform and vote against tax increases. They agreed chairmen CSSD Communists and the Christian Democrats in the Sunday Questions of Vaclav Moravec on Czech Television.

The government of Petr Necas waits difficult situation when enforcing laws implementing pension reform and settlement with churches. In the Senate, after a weekend election mandates and increased leftist presidents Social Democrats, Communists and Christian Democrats on Sunday announced that they will definitely vote against both proposals. Petr Necas still plans to make the ODS with its coalition partners modified the program strategy and the laws, about which there is the lowest degree of consensus rather waited.

"We're not a bunch of deaf and blind, we reflect on the election results, but the program we will continue to fulfill. Law on settlement with churches is absolutely crucial, it's not just about restitution, but the overall settlement of relations between church and state, which our country lacks. Managed to achieve substantial compliance seventeen representatives of Czech churches, that they need not be repeated, "said Prime Minister Petr Necas. He mentioned his concern that some churches he would not be willing to dialogue, if it were after 1 January next year to begin new negotiations, since the law passed.

Chairman of opposition parties alike fear does not bother his bipartisan energy directed primarily want to postpone pension reform and stop the tax package. "The situation is not so catastrophic that the reform did not wait another year or two.Moreover, it is bad, it does not causes, but effects, and benefit only a few percent of the very wealthy. Already the increase in VAT on food will be noticeable interference in people's lives, so we will also vote against the increase in the VAT rate, "said Paul Bělobrádek, KDU-CSL. Currently, the law as enshrined in the unification of the VAT rate to 17.5 percent from 1 January 2013. Bělobrádek added that the VAT increase by one point to 15 and 21 percent, as it requires tax package is not necessary, because it was funded pension reform, and it should be postponed.

Bohuslav Sobotka, leader of the Social Democratic Party, announced that next week his party would submit a proposal in the House that the pension reform postponed for two years. "We have approved the implementing legislation for this reform, it would be a terrible mess if it enters into force without them," he mentioned.

Vojtech Filip, KSCM chairman added that his political grouping will also block both of these laws require the postponement of the new Civil Code. "If it came into force from next year, it would mean the collapse of the Czech judiciary," published opinion Communists.

Petr Necas nevertheless believe that the increase in VAT together with the tax package passes, as well as alignment with churches and pension reform, because MPs outvote the Senate. "All members of the ODS for these laws repeatedly raised their hand, we sat on it with coalition partners long into the night. Disloyalty so I do not expect that anyone would vote differently now, without losing face," concluded the Prime Minister.

Katerina Šurmanová,

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