New finance minister wants to cut tax breaks on mortgages

The new Czech finance minister, Miroslav Kalousek, told the daily Právo on Saturday he would remove tax breaks on mortgages. The change should be included in a new tax bill that should enter into force in two years’ time. Mr Kalousek said he saw no reason why socially challenged people, who cannot afford mortgages anyway, should contribute to mortgages of people with higher income. Under the current legal arrangement, people can add mortgages to their tax base, and pay lower taxes as a result. The new centre-right government had announced earlier it also wanted to lower state incentives for individual building saving accounts.

Author: Jan Richter