Senate to reject tax legislation
The Czech Senate will reject legislation that would cut taxes for investment funds and introduce a zero tax on dividends, Senate speaker Milan Štěch and Social Democrat leader Bohuslav Sobotka told reporters on Friday. The Social Democrats control the Senate with 46 out of 81 seats. The officials said the legislation, put forth by the previous centre-right government and approved by the lower house, would result in serious losses for the state budget. However, the bills are part of legislation needed for a new civil code to enter into force on January 1, 2014. Mr Stěch said the government could deal with the situation via the so-called legal measures the Senate can adopt while the lower house is dissolved.