Czech Chamber of Commerce calls for abolishment of investment incentives

The Czech Chamber of Commerce has called on the Minister of Trade and Industry Martin Riman to abolish foreign investment incentives. The chairman of the chamber Jaromir Drabek said on Wednesday that incentives used to attract investment such as tax breaks and financial support for job creation gave many foreign firms an unfair advantage on the Czech market. He also added that many local businesses were suffering because they could not hold on to qualified personnel who were going to work for incoming foreign companies.

Mr Riman for his part said he himself agreed with most of Mr Drabek's concerns but that there was currently not enough political support in the government for a complete abolition of investment incentives. Nevertheless, he did say that legislation had been introduced in the spring which was meant to tighten up the investment incentive system and that the effect of these new laws would assessed at the start of next year.