Government approves package of flood measures

Les inondations

The Czech government has approved a package of measures to raise extra money to finance repair of damage caused by the recent devastating floods. The government hopes to gain an extra 26 billion crowns for the state budget over the next two years.

The Czech government has approved a package of measures to raise extra money to finance repair of damage caused by the recent devastating floods. The government hopes to gain an extra 26 billion crowns for the state budget over the next two years. The measures include the introduction of a 35-percent tax on personal incomes exceeding 900,000 crowns annually, and an increase in VAT from 5 to 7 percent on services and selected goods, while the 22 percent VAT levied on most products will be decreased to 21 percent.