The three coalition parties, ODS, Christian Democrats and the Greens are close to signing the coalition agreement, which is expected to be signed on Monday, June 26. The agreement assumes a flat tax rate between 15-19% for individuals and companies and single VAT in the range of 15-19% with several exceptions (foods, drugs, etc), removal of capital gains÷nd tax, no new nuclear blocks to be built over the next four years and preservation of the current mining limits and introduction of excise tax (ecological tax) on electricity, coal and heat as of 2008 (not specified yet).
However, note that the centre-right coalition has 100 seats only and needs 101 votes to win the vote of confidence. So far, (CSSD) Social Democrats and the Communists have been strictly denying the flat tax rate while CSSD is supporting together with the ODS extension of nuclear power plants and breaking mining limits. Therefore, there is a high chance that the centre-right Government will not win the vote of confidence (at least in the first round out of three) and that also a grand-coalition (ODS-CSSD) or CSSD’s support of a minority (ODS) Government is also a possibility.