Government delays promised corporate tax reduction, cites budget constraints
The coalition government has postponed its planned corporate income tax cut, saying the loss of revenue would be too large.
Officials announced that the anticipated reduction in the corporate tax rate will not be implemented as scheduled. A Finance Ministry estimate puts the annual revenue shortfall at CZK 30 billion. Finance Minister Alena Schillerová explained that the state cannot afford such a loss at present. Instead, the cabinet will introduce more favorable depreciation rules for activities like research and development and for new businesses.
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