Prime Minister Andrej Babis has confirmed that a government planned tax
reform will have to be postponed until 2021 since the national budget could
not afford the subsequent fall-out in revenues it would bring about. The
opposition parties have criticized the delay.
The proposed tax reform envisages the abolition of the so-called “supergross” tax wage. Instead, the draft amendment introduces a progressive tax rate of 19% for income of up to 1.5 million crowns and 24% for income above this amount. Entrepreneurs, including those claiming expenses as a percentage of income, will be allowed to deduct 75% of social security and health insurance contributions paid.
Trade unionists at Severočeské Doly, a brown coal mining company owned by
state-controlled utility ČEZ, say workers have gone on strike alert over a
pay rise dispute.
A seventh round of collective bargaining held early this week failed to bring an agreement.
The unions are seeking an average pay rise of 2,000 crowns for miners and other workers at Severočeské Doly.
Prague-listed ČEZ has declined to comment on the ongoing negotiations, which began in October.
The average mortgage rate rose to 2.91 percent in December from 2.78
percent the previous month. According to Fincentrum Hypoindex data,
mortgages have risen at the fastest rate in 10 years.
The size of an average mortgage loan grew steadily throughout 2018 to stand at nearly 2.3 million crowns in December.
The number of applicants had surged in September as people sought to get mortgages before tougher lending guidelines set by the Czech National Bank came into effect on October 1.
Under the guidelines, a borrower should not be eligible for a loan which is greater than nine times their annual net income, or need to spend over 45 percent of their monthly net income to service the debt.
Compared to the previous month, unemployment in December rose by three tenths to 3.1 percent, with 231,500 people being out of work, the Czech Labour Office announced on Wednesday. However, unemployment numbers remained the lowest for any December since 1996 and the amount of job offers actually saw an increase.
As the deadline date for Brexit looms ever closer, Czechs are asking themselves what the economic impact of a “hard” Brexit would be. A report published by Česká spořitelna, says that as the country’s fifth largest trading partner, the UK’s exit on WTO rules could cost tens of thousands of Czech jobs and around CZK 55 billion. However, the economic impact would be too small to affect projected economic growth.
Unemployment in the Czech Republic remained at 2.8 percent in November, the
same as the previous month, the Czech Labour Office announced on Monday.
The number of jobless dropped to 215,010, which is the lowest figure since June 1997, while the number of vacancies increased to over 323,500. Last November, unemployment stood at 3.5 percent.
The lowest rate of unemployment, 1.8 percent, is in the Pardubice region, while the highest rate is in region of Moravia-Silesia and Ústí nad Labem with 4.3 percent of people out of work.
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