Senate rejects amendment to bill on employee benefits

The Czech Senate has rejected an amendment to the law on the taxation of employee benefits. The proposed amendment, which aimed to return benefits to 2009 levels, was rejected by the majority of right-wing senators who said it threatened to increase the already steep budget deficit. The amendment was the result of the government’s effort to avert a nation-wide transport strike this week. Prior to the vote, Christian Democrats in the lower house said they will help overturn both the rejection by the Senate and an eventual veto by President Václav Klaus.

In related news, the daily Mladá fronta Dnes wrote on Friday that the government had lied to politicians about the impact of the proposed amendment on the country’s finances: they said it would increase the deficit by tens of millions of crowns, while the paper’s analysts had arrived at a much higher figure – well over a billion.

Author: Jan Velinger