According to HN daily, budget committee rejected government proposal of planned tax reform. Budget committee consists of 11 coalition and 11 opposition MP, when 1 coalition MP was missing. Government should decide on implementation of final changes this Friday and the tax reform package should be discussed on 14 August in the Parliament.
Separately, daily Pravo informed about another version of possible taxation for citizens, which should decrease from currently proposed 15% to 13.5% of super-gross wage (gross wage including social security payments) from 2008 and 12% from 2010. There are possible changes in corporate tax as well, when current proposal of 22% in 2008, 20% in 2009 and 19% in 2010 could be modified with decrease to 21% in 2008.
We believe that the tax reform has chances to be passed as government seems to find consensus on proposed changes among coalition MP as well as two former Social Democrats, Melcak and Pohanka who supported government also during the vote of confidence. Note that there are some 90 proposals for various changes, which needs to be discussed, therefore the process could be lengthy. Minister of Finance is open to changes, however they need to be budget neutral.