Schillerová promised the return of parental benefits, student discounts, and stated when EET will return
The Czech finance minister Alena Schillerová announced plans to reinstate parental benefits and tax relief for working students, alongside the new EET system starting next year.
During a press conference, Czech Finance Minister Alena Schillerová discussed the government's initiatives to reintroduce parental benefits for early childhood education and tax deductions for working students. She emphasized that these social tax reliefs will likely be included in a broader family-oriented legislative package rather than as part of the electronic evidence of sales (EET) law. The minister aims to provide more support for families, indicating a shift towards enhancing work-life balance and encouraging youth engagement in the workforce.
The government also plans to eliminate the restrictions on employee benefits, with recreational benefits and employer contributions to social services being completely exempt from tax according to a press release from the ministry. This move is anticipated to further alleviate the financial burden on families and improve overall employee welfare. The dialogue reflects a commitment to reforming fiscal policies that prioritize social support amidst economic challenges.
The new EET system, referred to as EET 2.0, is set to launch in January next year, initially in a pilot phase. This system will not be mandatory for entrepreneurs in the first tier of the flat tax scheme, those with annual incomes below one million crowns, or those subject to a monthly flat tax of 1500 crowns along with compulsory social and health insurance payments. Schillerová estimates that the fiscal benefits from EET 2.0 could yield significant revenue for the state in terms of VAT and income tax, reaching between 14 to 16 billion crowns, thereby highlighting the importance of modernizing tax collection systems to enhance state revenue in a post-pandemic environment.