Vladimír Urbánek (Kurzy.cz)
Taxes and Accounting  |  October 29, 2012 13:58:04

EKOSPOL: Uncertainty regarding VAT destroys Czech firms

The continuing uncertainty about the future of VAT in the new year is still significantly negative effect on the life of Czech companies. Personnel policy, pricing strategies, investment planning, negotiating long-term contracts with suppliers and much more - all must deal with the Czech company in advance. In a situation where nobody knows what amount of VAT will apply the new year, but it is impossible.

Strong reservations Czech entrepreneurs to the current process of government were heard again in yesterday's discussion program Questions of Vaclav Moravec."The Czech government but apparently unaware of the fact that uncertainty about future tax burden in the Czech Republic produces a highly volatile business environment, with all the side effects. If it is not clear what rules will apply from next year, will limit its investments and companies that are otherwise financially healthy and could invest. This is of course reflected in rising unemployment, falling household consumption and, ultimately, higher social spending state, "warns Eugene Korec, CEO and Chairman of the Board EKOSPOL development company.

The government instead of better traffic control lights turn off

Even though most of the currently discussed options are to increase the lower VAT rate and thus the increase in the cost of basic foodstuffs, medicines and new housing, businesses are united. It is no longer so important, what changes in the VAT rate will undergo ultimately, the most important is that it was finally clear. So the government decided as soon as possible and give entrepreneurs a clear word.

Unfortunately, the current state of Korce best characterized by comparisons when "space traffic control at the intersection at the height of rush hour simply close your eyes and turn off the lights."

Taxes would not have to increase if the stealing

Remains a sad statement that the tax may not increase at all, if the State had behaved like a proper manager.Even in the proposed budget are in fact chapters, which serve primarily to controlled or uncontrolled looting of billions, such as třicetimiliardová chapter " externally purchased services. "" Space for search billions in savings is still overpriced and bloated government procurement clerk apparatus, inefficient disposal of immovable property of the state, "says Eugene Korec.


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