President Zeman vetoes amendment to 2022 budget

President Miloš Zeman vetoed an amendment to this year’s budget on Thursday, arguing that the revenues are lower than they could have been had an amendment to the Income Tax Act been adopted first.

Mr. Zeman justified his decision in a letter sent to the speaker of the lower house, Marketa Pekarova Adamová. The amendment will now return to the lower house for a fresh vote.

In 2020, the lower house approved a proposal by the then Babiš government to abolish the so-called “super gross wage” as the base for calculating employee income tax.

The prime minister promised Zeman that the law, which saw the income tax cut from 20 to 15 percent for low and medium income groups, would be amended after two years.

The lower house approved an increase in the deficit of this year's state budget in October from CZK 280 billion to CZK 375 billion.