Prague, Feb 26 (CTK) – The limit for a higher taxation of incomes, which Czech PM Bohuslav Sobotka’s Social Democrats (CSSD) proposed recently, might be increased, since a part of CSSD members want it to be more than the proposed 50,000 crowns and to reach 70,000 or 80,000 crowns, Sobotka said on Sunday.
A debate about the cap is underway in the CSSD, he said.
The CSSD wants to present the final version of its draft tax reform by the summer holiday, he said.
Earlier this week, the CSSD proposed the replacement of the current flat tax, which is 15 percent derived from the super gross wage, with a system of progressive taxation.
It would consist of four tax rates rising with the taxpayer’s incomes.
The tax would be 12 percent, calculated from the super gross wage, for the monthly gross income below 30,000 crowns, 15 percent for the gross income from 30,000 to 40,000, 25 percent for that from 40,000 to 50,000 and 32 percent for that exceeding 50,000 crowns.
The CSSD wants the corporate tax, now at 19 percent, to be progressive as well. It proposed to introduce the tax rates of 14, 19 and 24 percent depending on the firm’s yearly profit.
The proposal has met with criticism from both opposition parties and the CSSD’s partners in the centre-left coalition government.
Opposition Mayors and Independents Movement (STAN) chairman Petr Gazdik said on Czech Television on Sunday that such tax changes would afflict qualified people who are supposed to be a motor of the national economy.
“It is an utter nonsense from the point of view of economic growth,” Gazdik said.
