The government coalition is postponing a cut in corporate income tax from 21 to 19 percent, despite it being one of its major economic promises. According to a new Finance Ministry estimate, the two-percentage-point reduction would cost public budgets CZK 30 billion a year.
Finance Minister Alena Schillerová (ANO) told Czech Television that the state could not currently afford such a substantial loss of revenue. Instead, the cabinet plans to offer companies more favourable depreciation rules, for example for investment in research and development or for newly established businesses.