Government as well as Senate approved proposed tax reform yesterday. State budget counts with the deficit CZK 70.8bn. Revenues should reach CZK 1.037bn, while expenses CZK 1.107bn. Planned deficit should reach 2.95% of GDP, which is in-line with EU requirements for EUR adoption. Tax reform now waits for President approval.
We see the news as neutral as the approval has been expected based on the majority of ODS in the Senate. We don’t see any obstacles with President approval as he is former ODS member and supports the reform.