Hamáček calls the new possible tax reform unrealistic

CZ

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Prague Every day Monitor |

5 August 2020

Earlier this week, it was announced that the Czech authorities is planning to discuss the thought of probably the most vital tax reform during the last 13 years through the cupboard meeting on the 11th August. The reform is supposed to abolish the revenue tax of 15% of the super-gross wage (which also consists of health and social insurance coverage contributions paid by the employer) by chopping it right down to the cost of 15% of gross wage. Presently, it makes for about 20% of gross wage. Nevertheless, the Deputy Prime Minister and head of the CSSD, Jan Hamáček, referred to as the plan unrealistic, iDnes.cz reports.

Prime Minister Andrej Babiš announced the abolishment of the super-gross wage by saying the next in his regular vlog on Facebook: "In fact, we'll abolish the super-gross wage. You will undoubtedly see it all on payrolls, because it's mandatory to scale back the tax burden on staff.”

In response to Babiš, such aid will stimulate the financial system by encouraging individuals to spend extra money after earning more. Nevertheless, Jan Hamáček does not see this state of affairs as very possible.

"For my part, fifteen % is unrealistic as a consequence of a huge lack of state price range revenue," Hamáček advised the every day Právo, iDnes.cz reports.

The Minister of Finance, Alena Schillerová, agrees with Babiš, however factors out that the budgetary implications will mean a loss of 90 billion crowns.

“Generally, we're in favor of decreasing the tax burden on staff. I don't have an issue with 15 %, nevertheless it must go hand in hand with an answer to the state finances failure that can be brought on by this," commented Jan Chvojka, the top of CSSD deputies, iDnes.cz reports.

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