TNBiz (TNBiz)
Laws  |  October 24, 2012 17:25:06

MEPs sent to závěrečního reading tax package

PRAGUE (MEDIAFAX) - Second reading of fiscal stabilization package in the Chamber of Deputies on Wednesday ended. Members loaded amendments, for example, retain the existing VAT rate and sent it to the third reading.

It is not yet clear when the draft to the final reading of the legislators get, it could be as early as next week, before Congress ODS, which will be held on the third weekend and 4 November.

Chairman of Budget Committee retrieve amendment, which had previously informed the Prime Minister Petr Necas (ODS). That leaves the top VAT rate unchanged, but lower increases by one percentage point to 15 percent. Solidarity seven percent surtax on people with incomes over 100,000 crowns would apply only in the next year. This idea would suffice such as deputies Boris Happy (ODS), which would obviously support package.If, however, preserve the tax in 2014 and repealed by the super-gross wage, was not willing to agree to the proposal. This would mean, according to him, the tax progression.

"It's good, destructive degression. It's a flat tax. Millionaire tax does not exist," he said when discussing proposals deputy Viktor Paggio (PEOPLE). The opposition largely criticized in the discussion draft.

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, no matter 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 governmentCoalition failed to override his opinion. President Vaclav Klaus has criticized the tax increases.

Prime Minister Petr Necas (ODS) in September decided that a vote on a package together 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 a 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 thousand. 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.

Jan Drahorád,

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