Amendment to the Act on Value Added Tax

In an effort to reduce increasing deficits in the state budget, the Czech government has prepared a financial reform, consisting in amendments of a number of tax and social security laws. The financial reform is subject to many political controversies and the government has difficulties to obtain the necessary support in the Czech Parliament to approve the envisaged legislative changes. The situation is even more complicated by the fact that the President may veto bills approved by Parliament and such presidential veto may be overcome only by an absolute majority of all MPs of the Chamber of Deputies.

So far, the only piece of legislation within the framework of the financial reform having been finally approved by the Parliament is the Amendment of the Act on Value Added Tax, which has been reconfirmed by an absolute majority of MPs after a presidential veto.