- The OECD recommends the Czech Republic shift the tax burden away from social security contributions towards indirect taxes, environmental taxes, and property taxes.
- The report notes that the Czech Republic’s fiscal position deteriorated between 2019 and 2023 due to COVID-19 support measures.
- The Czech government has begun to reduce the fiscal deficit with tax regime changes in 2024, including an increase in the corporate income tax rate, employee sickness insurance contributions, immovable property tax rates, and a reduction in VAT rates.
- The OECD recommends tax and spending reforms to ensure fiscal sustainability without harming growth.
- The OECD suggests introducing angel investor tax breaks, phasing out fossil fuel subsidies, raising carbon prices, increasing recurrent taxes on immovable property, reviewing inefficient VAT exemptions, and lowering the VAT registration threshold.
- The OECD argues that a lower reliance on social security contributions and higher revenues from property taxes and indirect taxes would make the tax system more growth-friendly and reduce the exposure of government revenue to aging.
Source: answerconnect.cch.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
