Senate makes modifications to tax package

The Senate has made modifications to a bill amending aspects of the Czech tax system that had previously been approved by the Chamber of Deputies. Senators voted on Thursday evening to increase tax payers’ flat tax-deduction sum in the following two years, each time by CZK 3,000, though that figure is lower than the one MPs approved. In addition municipalities and regions should receive compensation of 80 percent toward future fall-offs in revenues; this will stem from the abolition of the “super gross” salary and a cut in the income tax level, which will fall to 15 percent (top earners will pay 23 percent).

The amended tax package will now return to the Chamber of Deputies for a re-vote by MPs, who are expected to pass it.