Czech Prime Minister proposing to decrease individual income tax

Czech Prime Minister Mirek Topolanek wants to call a meeting of the leadership of the three ruling parties - for August 13th to propose an individual income tax rate of 13.5 percent of the super gross wage (the gross wage plus health and social insurance) next year and 12 percent in 2010. According to the daily Pravo, the proposal is a reaction to pressure by fellow Civic Democrat Vlastimil Tlusty.

The governing collation of the Civic Democrats, the Christian Democrats and the Greens originally proposed a 15 percent individual income tax in a draft reform which was approved in May. Experts say fine-tuning of the proposal will be impossible to complete by August 14, when the draft is to be discussed at the Chamber of Deputies meeting.

Author: Ruth Fraňková