Czech Republic

Government to link tax vote to confidence


The Czech government failed to pass a bill which would introduce a 1% increase in VAT and a 7% increase in tax for high earners on Wednesday. The vote was lost because six members of the ruling Civic Democratic Party (ODS) voted against the measure.

Despite Prime Minister Petr Nečas stating that if the government was unable to pass the bill it would resign; instead he has decided to re-submit the bill within the next three months. However, this time it will be linked to a confidence vote in the government.

Independent observers are saying that the revolt had less to do with the tax hike and more to do with personality clashes in the ODS. The decision to link the future vote to confidence in the government will decide if the government falls or continues to stagger on with little or no majority.

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