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Finance Minister to propose supergross wage abolition in 2019

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Prague, April 25 (CTK) – The Czech government will propose the abolition of the supergross wage only next year because it lacks the necessary political support for it now, Finance Minister Alena Schillerova (ANO) told senators on Wednesday.

“The abolition of the supergross wage and cutting taxes requires political support, which the government does not have,” she said.

Schillerova originally planned to submit this proposal to the government within two weeks as part of a package of tax changes and abolish the supergross wage as of January 2019.

She said Wednesday the planned tax changes will only be based on the demands of the European Union.

Schillerova is a member of the ANO minority cabinet that failed to win parliament’s support in January. The ANO centrist movement is negotiating about a government alliance with the Social Democrats (CSSD) backed by the Communists (KSCM).

According to the policy statement of the current government, the supergross wage would be replaced by the introduction of a 19-percent income tax.

Experts whom CTK addressed said the tax burden would remain more or less the same if the changes were introduced.

The right-wing opposition Civic Democrats (ODS) criticised Schillerova’s plans.

Schillerova said the incomes of municipalities would not be further increased within the tax redistribution, although some senators called for it.

Within the discussion about the convergence programme which concerns the preparation for euro adoption, Schillerova said the system of investment incentives needed to be reconsidered.

She said the system should focus on types of firms and technologies that are missing in the country.

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