On September 5, 2012, the Chamber of Deputies (lower house) of the Czech Parliament voted to reject Prime Minister Petr Necas’ proposal to impose a second tax rate of 26% on upper-income households, which would convert the country's 19% flat tax into a graduated tax with two rates of 19% and 26%.
The AP reported that the government (the prime minister and his cabinet) will resubmit the tax-rate increase to Parliament in three months as part of a no-confidence vote against the government. If Parliament rejects the increase a second time, the government will fall and new elections will be called.
President Vaclav Klaus and several deputies of the ruling Civic Democratic Party stated that the tax increase was against their party’s values.
The AP reported that the government (the prime minister and his cabinet) will resubmit the tax-rate increase to Parliament in three months as part of a no-confidence vote against the government. If Parliament rejects the increase a second time, the government will fall and new elections will be called.
President Vaclav Klaus and several deputies of the ruling Civic Democratic Party stated that the tax increase was against their party’s values.
