TNBiz (TNBiz)
Politics and Events  |  October 24, 2012 16:35:05

Members began discussing the tax package in the second reading


PRAGUE (MEDIAFAX) - The package of changes, for example, increase the rate of value added tax by one percentage point in both rates, began on Wednesday to discuss MPs in the second reading. The package is linked to the confidence of the government.

Non-attached Member Paroubek (NS-LEV 21) indicates package for zdražovací. Himself would advise rather than raising taxes better selection of money the government. "A state that fails to levy taxes on the state of decomposition," said opposition lawmaker.

"Mr. Prime Minister and Minister Kalousek decided that it (package) pushes the plot, what, even if he does not want the Chamber of Deputies or the Senate, even the president," said deputy Ladislav Šincl (CSSD), who alluded to the fact The Senate proposal already returned and the ruling coalition failed to override his opinion.

Prime Minister Petr Necas (ODS) in September decided that even when pack members do not want to bind it with the confidence of the government. "If we are not able to fulfill our consolidation strategy, so I refuse to be at the forefront of servicing government that sits just because it fits," said the other, only six members of the Civic Democrats, who have rejected the proposal to raise a hand, yet convinced. The "rebels" are, now trying to push through a compromise proposal that would "only" raised the lower VAT rate by one percentage point. At the same time new package, seven percent solidarity tax on people with incomes over 100,000 crowns a month, paid only one year.

Budget Committee has already recommended that the voices of opposition to adopt amendments to the VAT answer.

But if the package ever fails, the government will end and VAT under current legislation next year united to 17.5 percent.

Current expenditure on self-inclusives remain untouched, but the amount of tax deductions at 30 and 40 percent lump-sum income will be limited in the amount of two million, so most of these traders apply in spending 600 or 800 000 crowns. Self-employed persons who decide to take advantage of fixed rates, lose some discounts, such as the tax credit for a dependent child, or discount for a spouse with no or low income.

Part of the austerity package, which the government wants to keep the budget deficit next year at a value below three percent of GDP, is the excise duty on still wine, or slowing indexation of pensions to one third of the growth in real wages and a third inflation. This change was approved by MEPs and the President signed the law.

Jan Drahorád, drahorad@mediafax.cz

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