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Current AffairsRight-wing parties willing to introduce some form of progressive taxation
Although on Wednesday the cabinet approved a draft budget for 2012
envisaging a deficit of 105 billion crowns, the right wing parties have not
given up pushing for an alternative proposal which would enable a more
drastic reduction of the public finance deficit to 95 billion crowns. In
order to give the latter proposal, envisaging a unified 19 percent VAT
rate, a new lease on life TOP 09 and the Civic Democratic Party have said
they are willing to consider the junior party Public Affairs’ demand for
progressive taxation – albeit indirectly and for a limited period of
time. Radio Prague asked Raiffeisen bank’s chief economist and former
finance minister Pavel Mertlík what he thinks is behind the unexpected
U-turn. More
Current AffairsCabinet approves draft budget for 2012
The Czech government on Wednesday approved the framework of the 2012 state
budget counting on a deficit of 105 billion crowns or 3.5 percent of GDP.
Although this draft proposal meets the finance minister’s original goal,
Wednesday’s cabinet session was marked by discord and none of the three
ruling parties appeared to be entirely satisfied with the agreement
reached. For some it was too little, for others way over the top. More
Current AffairsNo agreement yet by coalition on new VAT rate or spending cuts
A meeting between government coalition leaders on Monday failed to produce
conclusive results on how the government will offset falling tax revenues.
But two variants, narrowed down, are on the table: to introduce new
spending cuts at most government ministries as well as in some social
benefits to bring the public finance deficit down to 3.5 percent of GDP in
2012. Or, alternatively, to raise the VAT to a uniform 19 percent (with
minimal exemptions on books, medicines, newspapers & magazines). More
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