Taxes will decrease as of January for all people who have some income and pay social insurance. In the last moment, the government managed to reduce social insurance payments by 1.5% in the lower house Wednesday. As a result, state budget revenues will fall by CZK 18 billion. There is a threat of a high budget deficit already now, but many countries in the world resort to tax cuts due to the crisis and ministers believe such a move will boost the economy. “It is good news for low-income groups because their mandatory payments will be lower. Payments will also decrease to those who now do not pay any income tax because their tax deductions are now lower than theContinue Reading

The investment group PPF, which belongs to the richest Czech Petr Kellner has disclosed for the first time its stance on the financial crisis and the way it wants to cope with the it. “We perceive the crisis much more seriously than the majority of local entrepreneurs. We regard the opinion that the Czech Republic will remain a safe heaven as complete nonsense. The economy and the collapse is happening on a global level, and the crisis in the Czech Republic is just getting underway,” PPF co-owner and director Jiří Šmejc said in an exclusive interview with HN. PPF’s response to the crisis will involve two main steps – hefty cost reductions, including job cuts, and, on the other hand,Continue Reading

An increasing number of Czechs are starting to pay for their huge spending. “The increase is huge – between one-third and one-half over the past two years,” said Vladimír Polák, a judge in Nový Jičín. Lawsuits involving unpaid consumer loans account for more than 50% of administrative work of the local court’s commercial department, he added. Some of his colleagues fear the situation will get even worse as a result of the current financial crisis. “People are becoming insolvent now, but first there is always an effort to resolve the problem through an out-of-court settlement. We expect the biggest load of lawsuits to come in two to three months, that is, in January and February,” said Filip Havrda, a judgeContinue Reading