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Czech Senate Panel Advises Rejecting Tax Rise, CTK Says

The Czech Senate’s committee for the economy recommended that the upper house of parliament reject a government bill that raises taxes starting next year, CTK newswire reported, citing the result of the panel’s session.

The Senate, in which the opposition Social Democrats hold a majority, will debate the legislation starting on Aug. 15. The government can overturn the Senate vote in a new ballot in the lower house of parliament in Prague.

The Cabinet is seeking to increase the value-added tax rates and create a new income-tax bracket for high earners in a bid to reduce the fiscal deficit to less than the European Union’s limit of 3 percent of gross domestic product next year.

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