The Czech government re-submitted its tax bill to the lower house, which refused to approve the measure on Wednesday. The tax package includes a controversial VAT rise, together with higher taxes on people with high incomes. According to the Finance Ministry, the changes could bring in an extra CZK 22bn in 2013, claims the government, and more than 31bn in 2014.
After his cabinet failed to push through the new tax regime on Wednesday, prime minister Petr Nečas linked a new vote on the changes with a vote of confidence in his government. It’s the first time a Czech government has tied a vote of confidence with a specific bill. The Chamber of Deputies will discuss the tax package on its next meeting September 18 and was asked to deal with it within three months.
