Senators on thursday, they modified the original parliamentary version so that the taxpayer’s discount increased in the next two years, always by three thousand crowns. Next year, the discount should increase from the current value of CZK 24,840 to CZK 27,840 per year, and in 2022 to CZK 30,840. The Chamber of Deputies proposed 34,125 crowns next year.
At the same time, municipalities and regions are to receive compensation of 80 percent for future revenue shortfalls. These are related to the planned abolition of the super-gross wage and the reduction of the personal income tax, where the rates are to be 15 and 23 percent, calculated from the gross wage. In the House version, these compensations for the regions were not taken into account at all.
MEPs are expected to vote on 22 December.
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The YES movement in the lower house – as well as in the upper one – could rely on the votes of the ODS or the People’s Party. Although they have yet to negotiate the position of the entire club, the very support of the Civic Democrats would mean a majority for the Senate version.
“The Senate has simply solved the problem caused by the vote in the Chamber of Deputies. I believe that it will help a lot and that the Chamber of Deputies accepts it, “said Minister of Finance Alena Schillerová (for YES).
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The first deputy chairman of the ODS, Zbyněk Stanjura, is also satisfied. “Our clubs have pushed for significant compensation for municipalities and regions, so I think it is a very good solution, and we will vote for it in the Chamber of Deputies.”
The chairman of KDU-ČSL Marian Jurečka then stated that the Senate version is significantly better than the original parliamentary version. “We managed to push through an increase in the taxpayer discount, which the YES movement did not want at all at first.”
The Communists are still considering support, the CSSD is against it
Communists who tolerate the minority cabinet are still considering their support. “This is a compromise that also addresses the lower deficit of the next budget, but I can’t say that yet, to say the final opinion,” said KSČM chairman Vojtěch Filip.
However, the biggest tax change in recent years will be encountered by the CSSD. According to the coalition agreement, the YES and CSSD cabinets wanted to enforce the tax changes as mutually agreed.
“For us, the Senate version is not so much better. It can be acknowledged that there are compensations for municipalities and regions and it is not such a budgetary disaster for them, but it is all the more a budgetary disaster for the state budget, “said Jan Hamáček, Deputy Prime Minister and Chairman of the CSSD.
How others are likely to vote
The SPD movement wants to support the parliamentary version in view of the higher taxpayer discount. The TOP 09 and STAN clubs will probably not support any variant. Like the Pirates, who will probably abstain from voting on the Senate version.
“We consider the changes in relation to local governments to be good, we would probably be able to live with some compromise on the taxpayer’s discount. But that there was no compromise on the rate (personal income taxes – editor’s note), we consider it a mistake, “said Mikuláš Ferjenčík (Pirates), Deputy Chairman of the House Budget Committee.
Deputies will meet over the House and Senate versions on December 22, but it is possible that this will not be the last vote on the tax package in the lower house.
The President of the Republic, Miloš Zeman, has previously announced that he wants to veto the tax package – in its original, parliamentary version. He did not like the amount of the taxpayer’s rebate and its impact on public finances.
The Prime Minister and the Minister of Finance want to discuss the Senate version with the President. He will head to Prague Castle behind the head of state on Tuesday.
Should the President veto the draft, MPs can – definitively – outvote it. With regard to the set legislative deadlines, however, not before January.
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