MPs to discuss state budget, taxes, parental allowance starting Tuesday

12-10-2019

The lower house of Parliament is expected to approve a government tax package at its session starting on Tuesday. It includes a proposal to raise taxes on alcohol and tobacco products, and an increase in parental allowance.

The basic parental allowance could rise from 80,000 crowns to 300,000 crowns. MPs are also due to start discuss the draft state budget for 2020, which counts on a 40 billion crown deficit.

In the initial round, MPs will approve the budget’s basic parameters, i.e. revenue, expenditure and deficit. MPs have tabled dozens of amendments to the tax package, only some of which the Committee on Budgets has supported thus far.

On Friday, Prime Minister Andrei Babiš (ANO) and Communist party leader Vojtěch Filip agreed to allocate an additional 4.9 billion crowns for the health sector. Originally, 334 billion crowns was earmarked for the sector.