Government finalizes reform plan

The Czech government has approved a series of proposed tax amendments within its budget reform plan. This includes a gradual corporate tax reduction from the present 31 percent to 24 percent in 2006. The medium-term reform plan aims to cut the public finance deficit to four percent of GDP by 2006 and envisages sweeping changes in the pension and social systems, tax adjustments and a reduction of 30,000 posts in state administration. The government has stuck firmly to its outlined goals, in spite of widespread trade union protests, and the proposed reform is to be presented to Parliament later this month.