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IDEA Talks: Abolition of Super-Gross Wages, Reductions in Social Security Contributions, and the Introduction of Tax Holidays

8 February, 2022

“It’s a perfect promise,” Klára Kalíšková comments in Idea Talks on the new Czech government’s promise to introduce tax holidays. “It would have a negligible impact on all employees except the most profitable 20 percent.”

In the interview, Klára analyzes the effects of tax legislation changes adopted in December 2020 and July 2021. It will reduce public revenues in 2022 by about 116 billion CZK (from 227 billion CZK to 111 billion CZK). In other words, in 2022, employees will pay less than half the income tax they would have paid without these tax changes. Workers in the lowest income quintile will save 500 CZK per month on average, whereas those in the highest income quintile will save an average of 4,000 CZK each month.

IDEA Talks is available on YouTube, Facebook and Twitter.