Czech Finance Minister prepares new tax consolidation package

Czech Finance Minister Alena Schiller is preparing a new consolidation package to address the national deficit. Despite previous political commitments not to raise taxes, Schiller has stated that increases in certain tax rates will be unavoidable to meet EU deficit reduction targets.

The proposed measures include raising consumption taxes, specifically targeting sectors with high profits, such as refinery taxes. Other potential measures include increased taxation on investment properties and products like kratom, nicotine pouches, and HHC. The government aims to reduce the deficit by 150 billion CZK by 2030, though the National Budget Council and Fitch have expressed skepticism regarding the feasibility of this goal. The deficit is projected to reach nearly 390 billion CZK next year, an increase of 80 billion CZK compared to the current year.