Babis forms working group to analyse taxing of employees


05.08.2014 13:56

Prague - Finance Minister Andrej Babis has formed a working group that should analyse taxing of employees and entrepreneurs and based on the results, the group can then propose system changes in the taxing, the ministry announced in a press release today.


Ministr financí Andrej Babiš. ČTK Krumphanzl Michal

"The working group´s task is to make an analysis of the current level of taxing of employees and self-employed in the Czech Republic. The analysis will compare taxing of individual groups of taxpayers on the labour market and at the same time make an international comparison," the ministry said.

The study is to take into consideration individual income tax and all social and health insurance payments.

The working group will have an expert and an interest section. The expert section will launch work in August. Reps of all coalition parties in Parliament, business associations, professional chambers and trade unions will be invited to discussion in November.

Alena Vancurova, head of the Public Finance Department at the University of Economics in Prague (VSE) chairs the working group. She has nominated as the group´s members Jan Siroky of the Technical University of Ostrava (VSB), Stanislav Klazar and Petr Mazouch of VSE in Prague, and Jan Vlach of the Labour and Social Affairs Research Institute.

The Finance Ministry will be represented by deputy minister Simona Hornochova and director of tax policy and administration strategy department section at the ministry Zdenek Hrdlicka.

Reps of the Health Ministry and Labour and Social Affairs Ministry will also take part in the expert section´s activities, as will Supreme Administrative Court´s judge Karel Simka and tax adviser Jan Capek.

The individual income tax rate is 15 percent in the Czech Republic but there are many exceptions and reliefs in the tax system. Apart from this, employers and self-employed have to pay social and health insurance.

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