The Lower House approved the income-tax amendment. It was accepted the version of the Senate that did not involve a controversial passage that would have taxed past-due liabilities. The amendment, which takes effect Jan. 1, increases the standard deduction from CZK 34.920 to CZK 38.040 and introduces a tax write-off of up to CZK 12.000 per year for life insurance.
The Lower House of Parliament overrode a Senate veto yesterday of a measure calling for the issuance of CZK 29.6bil in state bonds to help cover principal payments on the national debt in 2001.
In October 2000, total construction output rose by 15.4% (12.5% after adjustment for working days) and productivity of labour grew by 20.9%; all year-on-year, constant prices.
The Czech koruna was traded in a narrow range of 34.62-36.80 to the euro in Tuesday and it stood at 34.76 to the euro at the end of the trading. Against the dollar koruna left almost unchanged on 39.65.
Bond prices jumped up again on Tuesday. After rather disappointing construction output figures released in the morning, prices were a few basis points lower, however jumped during the day. Quite busy day, so unusual in last weeks, seen trading on wide spectre of issues; old taxation bonds were sold first, then recovered; and during the day, both corporates and governments have been in heavy demand.
On Wednesday, Q3 GDP figures will be crucial for further trading, we expect the number to be rather bullish.
Current benchmark prices: MoF 6.75/05 99.40-70 (+10 bps), MoF 6.30/07 95.00-30 (+30 bps), MoF 6.40/10 93.05-35 (+35 bps).