TNBiz (TNBiz)
Taxes and Accounting  |  November 08, 2012 09:26:41

The tax package will worsen the economic situation of the Czech Republic, says opposition

PRAGUE (MEDIAFAX) - Consolidation Package government worsen in the next year living in the Czech Republic, will work against economic growth and can get the country into recession, said on Wednesday CSSD chairman Bohuslav Sobotka. He also added that after the possible victory in elections the Social Democrats will stop raising VAT.

"Today, we were all members of Social Democrats and voted against the government zdražovacímu package. Increases the value added tax on all goods. Czech economy has been getting worse under the current government and the package situation even worse. Will act against economic growth, our economy again next year may fall into recession, "Sobotka said.

The only one who can help growth, according to him, the government. By Coalition approved "zdražovací" package, but he ruled out this possibility: "Herds our country into recession.We are trapped in a loop in a circle, and a package of cuts will worsen the living standards next year. We will do everything that the Senate returned to the House standard. "

Sobotka said that the government bears full responsibility for any confusion that the tax rates are from the beginning of the year. "We zdražovacím with this package we have nothing in common, before the risks we warned in time," he said.

The head of the Social Democrats also said that the party wants to return to full tax progression, and if you win the election, canceled a plan to unify VAT at 17.5 percent. "Also, stop the constant increase in VAT. Possible That our government will not do," he added.

CSSD deputy chairman and Chamber of Deputies Lubomir Zaoralek said it symbolic that the package was approved by vote of the new deputy Roman Pekarek (ODS). "This is so eloquent that this is hardly what to say. Was convicted in the first instance for corruption.This can not last for many months, this victory is truly temporary. Pekarek urge to give up his parliamentary mandate. The House has to deal with it, "he concluded.

Against the package on Wednesday expressed also chairman of the National Socialists Paroubek. The problem with the lack of money in the budget package approved ends. Paroubek in the state budget will continue to be missing around 20 billion crowns.

"The result was expected since the morning, but we do not think that only the signal stabilization of the political situation. Government has no stable majority. Latest in December, when the package back to the House, the government will again put to the test. Should also be re-vote of confidence . really afraid that will not be possible to satisfy the mandatory three months to discuss, Mr. President may use the passivity of Deputies, "commented admission standards KSCM deputy Jiri Dolejs.

The fact that the governing majority relies on the reserves of the Central Bohemian candidates, according to him, shows that the rebels as well as new members have been subject to strong pressures: "This government does not deserve the epithet nor corruption nor fiscally responsible."

Philip Nachtmann, Catherine Šurmanová,

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