The Czech tax authorities are preparing a change in regulations that will
impact those who rent out their properties long-term via Airbnb or similar
platforms, iHned.cz reported on Thursday. In a statement, the Financial
Administration said such services would be taxed the same as accommodation
services or other forms of enterprise, not as rent.
Landlords who earn CZK 1 million or more annually will be required to register as payers of value added tax.
The outgoing Czech prime minister, Bohuslav Sobotka, says the country
should adopt the euro as soon as possible in order to remain at the core of
the European Union, Novinky.cz reported. Speaking at a congress of the
Confederation of Industry, the Social Democrat PM said there was no other
path open to the Czech Republic.
Mr. Sobotka said all modernisation measures would function only if the country were members of the EU’s free internal market and part of a core of economically strong member states.
He also said that Czech politicians who had spoken about the country leaving the bloc were “crazies and semi-crazies”.
The price of butter on the Czech market has seen a steep rise, but viewed
in context with the average wage it is still lower than it was in the early
1990s, economic analyst Aleš Michl told the ctk news agency.
Michl pointed out that while in1991 the average wage could buy 189 quarts of butter, in 2017 it would get 489 quarts.
The rising price of butter on the domestic and world markets has become a hot topic of debate ahead of October’s general elections. Agriculture Minister Marian Jurečka last week accused retailers of contributing to the rise through their high profit margins.
Unemployment in September dropped to below four percent, in line with analysts’ predictions, the ctk news agency reported. September’s unemployment was 3.9 down from 4 percent in August. According to economist Lukas Kovanda due to the lack of skilled workers more firms are now taking in graduates fresh out of school whereas in the past they demanded work experience. Unemployment had not dropped below 4 percent since October of 2008.
Agriculture Minister Marian Jurečka says retailers are responsible for the
steep rise in the price of butter. According to the minister half of the
price makes up retail stores profit margins. He said rising prices on world
markets had also contributed to the increase.
The Union of Tourism and Trade has dismissed the claim that retailers are to blame saying the development of dairy prices on world markets is responsible. The price of butter on the Czech market has doubled in the past year.
This week Radio Prague staged a special debate about Czech economic convergence with the most developed West European economies. While other Central European countries have almost caught up the Czechs, it has been a stop-start and slow process to try and achieve the economic development and prosperity of economies such as Germany or France. The lag is especially striking with respect to average Czech wages and those, for instance, in Germany.
The Czech economy grew annually by 4.7 percent in the second quarter of
this year, the Czech Statistical Office said on Tuesday, confirming
preliminary figures released in early September. Analysts say this was the
fastest tempo of growth since the end of 2015 and the biggest
quarter-to-quarter growth recorded over the past 20 years.
According to experts, manufacturing industry, especially car production, was the major factor behind the growth.
Offers of historic buildings, castles and stately homes in the Czech
Republic outstrip potential interest, according to the Czech News Agency
after sounding out real estate agents.
Many would be buyers are deterred by the considerable reconstruction work
and costs that would be required, real estate agents said.
Conservation restrictions on what changes can be made are also a problem with buyers intending to carry out major changes and transformations. Most of the interest in such buildings comes from abroad, mainly from France and Russia, the report added.
The KPMG consultancy said around 1100 castles and stately homes are registered in the Czech Republic but their transformation into tourist accommodation or other uses is not expected to increase significantly in the short term.
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