In Business News this week: Study suggests grey economy equal to 15 percent of GDP; meat production up after over decade of decline; personnel agencies warn of huge shortfall in some specialists; VAT rise on cigarettes to kick in next month; and smart phones pass out classic mobiles on Czech market. More
As of January 1st, Czechs should save money on books, baby food and medicines which are now subject to a lower 10 percent value added tax. More
The lower house of Parliament on Monday approved a Senate proposal to postpone the introduction of a 21-percent value-added tax on building lost by one year. Senators argued that the introduction of the new tax could thwart sales of land that had already been arranged. The new tax will come into force in January 2016. The MPs on Monday also relaxed the rules for the newly introduced obligation to report VAT to the tax authorities; under the new rules, self-employed VAT payers will only be required to send in their reports every three months rather than each month.
In Business News this week: finance ministry to commission multi-billion crown deal on electronic sales register without open competition, number of companies on taxpayers blacklist growing, CEZ eyes Slovakia’s leading power company and Czech Airlines spreading its wings to new destinations. More
In what will no doubt be a boon to charities in the Czech Republic, it should soon become much easier for producers and retailers to give away unwanted foodstuffs, the Czech News Agency has reported. More
In Business News: Czech Airlines gets a firm commitment for financial support from Korean Air and pushes ahead with restructuring plan, the ruling parties agree on the introduction of kurzarbeit to cushion the impact of the EU-Russia sanctions and give their approval to a finance ministry proposal to level a punitive tax on undeclared property, and, the average interest rate on mortgage loans drops to its lowest level since 2003. More
The Senate on Wednesday approved a draft bill which would introduce a third Value Added Tax rate. The 10-percent rate should apply to books, medicine and baby food as of January 2015. More
The Senate on Thursday approved a government-proposed bill on the introduction of a third 10 percent VAT rate on books, baby food and medicines as of January 2015. The basic VAT rate of 21 percent and the reduced rate of 15 percent will be maintained. The bill still needs to be signed into law by the president.
The draft budget for next year, approved this week by the Czech government, projects a deficit of some 2.3 percent of the country’s GDP. Government officials say the budget will allow for higher public investments and hikes in public sector salaries and pensions. But critics argue the budget is unambitious, and a missed opportunity to narrow the Czech public finance deficit at a time of an economic recovery. More
The lower house of Parliament on Wednesday also passed a draft bill establishing a third level of the value added tax. The 10-percent rate would apply to books, medicine and baby food as of January 2015. The Czech Republic currently has two VAT rates of 21 and 15 percent. The proposal was put forward mainly to benefit pensioners and families with children by lowering the prices of the selected goods.