Austerity package brings into force numerous tax and other changes

The Czech government’s austerity package comes into force on January 1, 2024, bringing about significant changes to over 60 laws, among them major tax changes. The changes include new VAT rates, with lower rates for food products and higher rates for beverages, certain services, and draft beer, higher income tax for individuals and companies, higher property tax, and major cuts to government-sponsored subsidies. The minimum monthly wage will increase by 1, 600 crowns to 18, 900 crowns from January, and old-age, disability and widow/widower’s monthly pensions will increase by 360 crowns. Changes to the road law include higher fines, changes to the points system and enable 17-year olds to drive under the supervision of a mentor.