Prime Minister Andrej Babiš pledged in a speech before his ANO party’s biannual congress on Sunday to abolish the “super gross” tax wage as part of a wider tax reform effort that would reduce taxes on employees.
In effect since 2008, the super gross wage is the base for calculating the employee income tax. It is the sum of an employee’s gross wage plus social and health insurance premiums.
Mr Babiš, who founded ANO and is again running unopposed in the election for party chairman, said he also wants to revise social benefits policies to be more pro-family. He equated a decline in Czech birth rates with a high tax burden.
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