President Klaus vetoes proposal cutting tax on employee benefits

President Václav Klaus vetoed a proposed law aimed at cutting Value Added Tax on employee benefits. The proposed law was passed in a hurry at the start of March by the lower house to avert a threatened strike by transport workers. The president said that the step favoured a certain group of employees at the expense of the tax payer. The upper house, the Senate, has already voted against the new law. Unions expect lower house lawmakers will put the proposed law back on track by voting in its favour when they meet in mid-April.

Author: Chris Johnstone