Government to propose abolishing “super gross” wage for two years only

The government will propose the abolition of the “super gross” wage, as the base for calculating employee income tax, for a period of two years only, ie. until the end of its term in office, Prime Minister Andrej Babiš told Czech Television.

The statement comes following criticism that the planned tax reform, which will lower income tax for low and medium income groups, is too costly and the state can ill-afford it at the present time.

The proposal for the move to be time-limited originally came from President Miloš Zeman, but experts criticize the idea, saying it will bring confusion into the tax system.

The proposal would see income tax cut from the present 20 percent to 15 percent for low and medium income groups. People with an income of over 139,000 crowns a month would pay a 23 percent tax. If approved, it would cost the state 74 billion crowns annually.