Final Word from Wednesday, August 22, 2007

The coalition government promised a minor revolution in passing tax and social reforms, and some things - such as a flat personal income tax and caps on social taxes - qualify for this. What hasn't changed, though, is the way the government passes laws. The debate has been dragging on for months, yet not even the coalition MPs knew exactly what was being voted on in the end. A flat tax is relatively easy for companies to prepare for, but some of the changes - regarding such things as interest payments and leasing periods - are so fundamental that they could require a change in a company's business model. Giving companies only three months between the final signing and the effective date is almost criminal. Whether the business community gives the reforms a final thumbs up or thumbs down will depend largely on what new surprises are uncovered between now and D-Day on Jan. 1. [Czech Republic healthcare social security Parliament President Václav Klaus]


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