In Business News this week: The number of court foreclosures registered in the Czech Republic has gone down; Social Democrats to push for higher income tax; the four-millionth Skoda Octavia rolls off the production line.
Number of foreclosures down by 30 pct
The number of court foreclosures registered in the Czech Republic dropped by more than 30 percent in the first six months of this year to 320,000, the Czech Bailiffs’ Association said this week. The head of the association said the drop was caused by better public awareness and changes to legislation. In 2012, the number of foreclosures dropped by 13 percent compared to the previous year despite a sudden rise in foreclosure filings in early 2012 over new legislation that came into force in March, the association said.
Social Democrats will push for higher income tax
The head of the Social Democratic party, Bohuslav Sobotka, has said that if his party wins the election and heads the next government it will strive to introduce higher income tax for high earners. In an interview with iDnes, Mr Sobotka said that income tax between 27 and 29 percent for people earning more than 100 thousand crowns a month would help decrease government debt. The leading left-wing party also came out with a 21-point campaign platform, which promises the creation of new jobs, an increase of the minimum monthly wage from 8.5 to 12 thousand crowns.
Czech Rail posts losses of half-a-billion in 1H
Czech Rail suffered losses of 510 million crowns in the first half of 2013 – an increase of losses by 16 million year-on-year. The results were influenced most by massive investment by the company in the modernisation of its fleet with new railway cars, along with taxes in the amount of 320 million, the head of Czech Rail’s board of directors Dalibor Zelený said.
Toman pledges support for small and mid-level entrepreneurs
Agriculture Minister Miroslav Toman promised Czech bakers on Thursday that he will support small and mid-level businesses in the field and said he would protect the Czech market; the minister, speaking at the agricultural fair Země živitelka, asked bakers not to hike prices in negotiation with chain stores, nor to sell products below price. Due to the favourable harvest this year, the head of the Czech Federation of Bakers Jaromír Dřízal made clear they are hoping to maintain current prices until December.
Four million Skoda Octavias produced
The four millionth Skoda Octavia rolled off the production line of the largest Czech car maker’s factory in Mlada Bolesav, east of Prague, this week. Production of the Octavia – the best-selling car in the company’s history, began in 1996 and has gone through three generations, the last launched last December. Octavia’s make up 38 percent of Skoda Auto’s overall sales. Skoda Auto sold 464,600 vehicles in the Jan-June period, down 5.8 percent on the year.