Czech Premier Sticks to Tax Plan to Cut Deficit, CTK Says

The Czech Republic needs to stick to the government’s proposed fiscal measures to cut the deficit to below the European Union’s limit of 3 percent of economic output next year, CTK newswire said, citing Premier Petr Necas.

The lower house of parliament approved in July a government bill raising the value-added tax rates and creating a new tax bracket for higher earners.

The upper house, controlled by the opposition Social Democrats who are against the changes, is likely to reject the proposed legislation at a session starting tomorrow. The lower house may overturn the Senate’s vote in a new ballot.

To contact the reporter on this story: Peter Laca in Prague at placa@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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