Zeman and Babiš will discuss budget adjustments due to the tax package

Updates: 16.01.2021 00:03

Lány – The amendment to this year’s budget due to the tax package has one of the topics that will be addressed today in Lány by the economic advisory team of President Miloš Zeman. The meeting will be attended by Prime Minister Andrej Babiš (YES) with Minister of Finance Alena Schillerová (for YES). Babiš expects, as he said at the beginning of the year, that the meeting will result in further deadlines regarding the budget amendment.

The approved state budget for this year counts on a deficit of 320 billion crowns. However, it does not include the effects of the tax package, which will prepare a budget of 87.5 billion crowns this year as a result of the abolition of the super-gross wage. The budget amendment that is currently being prepared has a solution to this.

Unlike the budget, Zeman did not sign or veto the tax package because the tax change could “deepen the unfavorable development of public finances, especially the state budget.” The method of adopting the package, which, like the budget, came into force at the beginning of the year, was challenged by a group of senators at the Constitutional Court.

The tax package replaced the super-gross wage by taxing personal income at rates of 15 and 23 percent. It increased the annual tax rebate per taxpayer by CZK 3,000 and reduced the rate of excise duty on diesel by CZK 1 per liter. The budget counts on revenues of 1488.3 billion and expenditures of 1808.3 billion crowns. It is based on the assumption of economic growth of 3.9 percent.

Source: České noviny – hlavní události by www.ceskenoviny.cz.

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