Finance Minister scolds PM on flood relief funding turnaround

23-08-2010

Finance Minister Miroslav Kalousek has spoken out against the prime minister’s disapproval of a plan to finance flood relief from income tax breaks. Mr Kalousek said that the chairmen of the coalition parties had agreed on his ministry’s flood tax two weeks earlier, and said the PM’s about-face on the issue was absolutely inappropriate in a coalition. Following floods in north Bohemia two weeks ago, Mr Kalousek said all working Czechs would contribute to a flood relief fund in the form of a CZK 100-a-month cut in income tax breaks, a move some critics slammed as nothing less than a new tax. On Sunday, Prime Minister Nečas said he had a number of reservations regarding the flood tax, and referenced a pre-election promise not to increase direct taxes.