The Senate approved the tax on extraordinary profits and a higher limit for VAT registration
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For example, the limit for registering value-added tax payers will be increased from one million to two million crowns, and the limit allowing entrepreneurs to use the so-called flat-rate tax will also be increased.

The possibility of faster depreciation of company assets will be extended until the end of next year. The law still needs to be signed by the president.

Income from the tax on extraordinary profits is intended to cover the extraordinary costs that the state will have in connection with setting maximum energy prices. It is to be paid for a period of three years from next year until 2025. Its rate will be 60 percent.

Stanjura continues to count on 85 billion from the special tax, he does not comment on Křetínský’s departure

Economy

The income from the tax will be the exclusive income of the state budget and the state will not share it with regions and municipalities.

Given that the Senate approved the law, the senators did not vote on the proposals of their colleagues Michael Canov (STAN) and Vladislav Vilímec (ODS) to share a part of the income from the state budget with the regions and municipalities according to the budgetary allocation of taxes.

The Union of Towns and Municipalities of the Czech Republic also pleaded with the senators for revenue sharing. The House majority did not approve this proposal.

Finance Minister Zbyněk Stanjura (ODS) did not agree with the division of the revenue. He argued that the state will bear 100 percent of the costs of compensating energy prices, and therefore needs extraordinary income for this.

He also pointed out that the extraordinary expenses will go to the benefit of local governments and their organizations, because the state will set maximum electricity prices for their benefit as well.

Senator Canov wanted the distribution according to the shares established in the law on the budgetary determination of taxes. Senator Vilímec proposed that the regions and municipalities receive 20 percent of what would otherwise belong to them according to the Act on Budgetary Determination of Taxes. “I’m convinced it’s the right thing to do,” he said.

For example, Senate President Miloš Vystrčil (ODS) opposed the sharing of tax revenue. According to him, division with local governments is not correct and it is not fair to the state, nor to citizens and other institutions, which do not have a say in the money.

“Compensation on the consumer side and compensation on the producer side will be paid by the state, not municipalities, not regions,” argued the chairman of the ODS and TOP 09 senatorial club Zdeněk Nytra.

The Senate approved a tax on windfall profits of electricity producers

Homemade

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