Government overturns Senate veto regarding taxation of employee benefits
On Tuesday, the lower house of the Czech parliament overturned a veto by the Senate regarding an amendment to the act on value added tax that would cancel higher taxation of employee benefits. The final decision is now up to President Václav Klaus, who already stated that he would not sign the amendment. Should the change in law go through, it would raise the state budget deficit by over 700 million Czech crowns. Last week, transport union leaders threatened to go on a nation-wide strike should the higher taxation of employee benefits not be cancelled. After Prime Minister pushed through a decision in the unions’ favor, the Senate vetoed this decision.