The consolidation package brings a number of measures that have the potential to slow down the economic activity of companies. These include, in particular, a two-percent increase in corporate income tax, but also many other changes, such as the removal of the exemption of metallurgical and mineralogical processes (e.g. steel, glass) from the tax on natural gas and some other gases, the tax on solid fuels, and the tax on electricity.
However, if the whole complex of measures leads to the stabilisation of public finances and also has an anti-inflationary effect, then it can undoubtedly lead to greater investor confidence and a related willingness to invest. The tax package is also an opportunity for the government to review some of its approaches in the executive branch and to use it to correct some of the actions of the administration that have led to reduced investment activity. In this context, for example, the Confederation of Industry and Transport of the Czech Republic calls for the government to clearly declare the promotion of R&D tax deductions a positive measure for companies, making these deductions more attractive, especially for smaller companies that should not be afraid to use this tool. More attractive deductions will not put as much strain on the state budget, but they will motivate both small and mediumsized companies to invest more in research and development and multinational companies to allocate their development departments here. The example of other countries confirms that this is a proper and useful instrument. The Ministry of Finance, in cooperation with other ministries and the tax authorities, should actively change the environment so that companies, especially smaller ones, are not afraid to use this tool.
Jan Rafaj, Company Director, Executive Director of Heimstaden Czech s.r.o.
