The Czech parliament’s lower house has approved dozens of measures proposed by the government designed to keep the ballooning budget deficit under control
PRAGUE (AP) — The Czech parliament’s lower house on Friday approved dozens of measures proposed by the government designed to keep the ballooning budget deficit under control.
Czech citizens are a step closer to paying more for beer and medicine while businesses will face higher corporate taxes.
In the 200-seat house, 108 lawmakers from the ruling coalition voted in favor of the plan, while 86 opposition members were against.
As a result, the deficit of 3.5% of the gross domestic product expected for this year should drop to 1.8% next year and to 1.2% in 2025.
The package still needs approval from the upper house, the Senate, where the coalition government has a majority, and presidential approval before becoming effective next year.
Corporation tax will go up by two points to 21% while property tax for individuals will be also increased, as well the tax on alcohol, tobacco and betting.
Value-added tax will have two rates, 12% and 21%, instead of the current three — 10%, 15% and 21%).
Medicines will move from the 10% rate to 12%, while people will pay 21% VAT on their beloved beer in bars.
The package is a compromise reached by Fiala's five-party ruling coalition that took over after defeating populist Prime Minister Andrej Babis and his centrist ANO movement in the 2021 parliamentary election.