Friday, 3 April 2020

House passes additional measures to support residents during current crisis

Prague Daily Monitor |
25 March 2020

The house passed a slew of additional measures to help the population of the Czech Republic manage during this time of crises. In addition the increase estimated deficit for 2020 to CZK 200 billion was also agreed upon. The bill needs to pass the senate and be signed by the President, which is expected to be completed in a few days.

The first part of the bill was for parents with children up to 13 years of age. They can now apply reimbursement for childcare during the whole period of school closure, which is calculated now to go into May. If parents stay home and care for their children, making it not possible to go to work, they are eligible for 60 percent of their salaries. The opposition made it possible for parents to take turns.

There is a slew of professions which will be exempt from filing EET for the emergency period plus three months. Others on “zivnost” or contract employees do not have to pay deposits for health and social taxes, as well as health insurance, for a period of six months.

Students will have their graduation exams delayed until three weeks after schools reopen. If the schools stay closed until June then there will be minimized versions.

The deficit increase from a planned CZK 40 billion to CZK 200 billion will be funded through Czech state bond issues.
The next debate will be for a package concerning adversely effected businesses, which is almost all of them. There is a concern that some businesses on the cusp could quickly go into liquidation if they are not helped in coming days or weeks.