The Czech Finance Ministry plans to raise the excise tax on tobacco and cigarettes by 10 percent in 2020, aiming to raise up to an additional 7.7 billion crowns in state budget revenue, it said in a proposal on the government’s website on Friday. The tax rise is expected to increase budget revenue more in 2021, by up to 9.2 billion crowns, the proposal said, as effects of pre-stocking of lower-taxed products wane. The ministry also proposed higher taxes on spirits and gambling, which should boost budget revenue by 1.3 billion crowns in 2020, it said. The proposal must win the parliament’s backing to take effect. The government has been seeking to boost revenue to fund hikes in pensions and public sector wages as economic growth cools down. Author: red
Around 9.6 percent of Czechs were threatened by income poverty last year, said the Czech Statistics Office on Thursday. The figure was up 0.6 percent over the previous year. The income poverty line is set at 11,963 CZK per individual per month, or 25,122 per family with two children, said the office, releasing the result of the survey on income and living conditions of households. The Czech Republic continues to rank among the EU countries with the lowest share of people under the poverty line, said the Czech Statistics Office. The average monthly wage in the Czech Republic currently stands at 33,840 CZK. The survey shows that most households get their income quite easily or with little difficulty. But this is a big problem for 17.6 percent of households. In particular, single parents with children and women over the age of 65 who live alone have difficulty getting along with income. Also, the survey finds that almost one-tenth of Czech households pay more than 40 percent of their net income for housing, including energy. About two-thirds of them live in rented flats and the largest group among them are lonely pensioners. Author: red
The Budejovicky Budvar brewery in České Budějovice managed to survive a decades-long trademark battle over whether it could call its beer Budweiser. But now it faces another potential threat: Brexit. The United Kingdom is one of the brewer’s top five markets, though it won’t say exactly how much beer it sends there. Like many other businesses, it’s concerned about what will happen if Britain leaves the European Union without an agreement governing trade. That exit is due to happen on March 29, though with political wrangling still very much underway, a delay looks likely. That’s meant worrying uncertainty for businesses like Budvar that rely on being able to send their goods to Britain without inspection delays at borders. “It’s about two weeks to Brexit and nobody knows anything,” said Budvar director Petr Dvorak. “We’re now waiting for what happens because it’s going to be uncertain till the last moment.” Budvar’s business has been growing — it increased exports by 8.5 percent to reach 1.075 million hectoliters (28.4 million gallons) last year. The brewer reached its production capacity in recent years and has been expanding to be able to produce more. Still, a loss of UK business would be a blow,...
The Czech Republic has the highest job vacancy rate in the European Union, according to new data published by Eurostat on March 18. At six per cent, the vacancy rate in the Czech Republic is almost twice that of Belgium and Germany (3.4 per cent). Hungary is the only other emerging European country which has a higher vacancy rate than the EU average of 2.3 per cent. The lowest rates in the EU are found in Greece (0.4 per cent), Bulgaria, Ireland, Spain and Portugal (all 0.9 per cent). Elsewhere in emerging Europe, Latvia’s vacancy rate is the same as the EU average, at 2.3 per cent, closely followed by Slovenia with a rate of 2.2 per cent. Estonia’s vacancy rate is 1.8 per cent, Croatia’s 1.4 per cent, Lithuania’s and Slovakia’s 1.3 per cent and Romania’s 1.2 per cent. Poland has a vacancy rate of 1.1 per cent. Jakub Siedler, chief economist for the Dutch bank ING in the Czech Republic, said last month that the lack of a suitable workforce has become an increasingly more important barrier to further economic growth in the country. Eurostat defines a job vacancy as a paid post (newly created, unoccupied or about to become vacant)...
Czech apartment prices accelerated in 2H18, most likely due to the frontloading effect motivated by new macroprudential central bank rules. In our view, apartment prices should slow down this year. Czech apartment prices grew by 11.4% year on year in last quarter of 2018, after growing by 9.4% in the third quarter and 8.5% in the first half of 2018. In Prague, the prices of apartments rose by 8.7% year on year, but the prices of new apartments accelerated almost 18% year on year. Driven by frontloading activity on the credit market The sharp rise in apartment prices is most likely related to strong activity in the Czech property market and at the beginning of 4Q18, due to the frontloading effect on the back of stricter macroprudential recommendations of the Czech central bank. The volume of new housing loans accelerated by 30% in September and 50% in October 2018, as many were concerned mortgages might become unavailable to them after the new central bank measures. Prices to slowdown this year Given the frontloading effect pushing prices up in 2018, the slightly weaker economic activity expected this year, and mainly new stricter central bank measures limiting access to mortgages, property price growth will significantly slow down this...
The mayor of Prague has welcomed the prime minister of the Tibetan government-in-exile and presented him with the symbolic key to the Czech capital. Zdenek Hrib told Lobsang Sangay at a ceremony at Prague’s Old City Hall Wednesday he wants show solidarity with the Tibetan people, saying they were “were deprived of freedom in the most brutal way” 60 years ago. Prague officials also decided this week to fly again the Tibetan flag on the Tibetan national uprising day. China says Tibet has been part of its territory for centuries. Many Tibetans, however, insist they were essentially independent for most of that time and have accused China of heavy-handed rule since the country’s army battled its way into the Himalayan region in 1950. No Czech government members plan to meet with Sangay.
The European Commission published data from the Mobile Broadband Prices in Europe 2018 study, which compared the prices of available mobile carrier plans in all twenty-eight countries of the European Union. The comparison revealed that Czech mobile operators belong to the most expensive mobile service providers in the EU. The data for mobile carrier plans were collected in February of last year, as well as the statistics for cellular data plans that following June, with the purpose of comparing the total costs of specific mobile carrier plans in each EU country. The study included prices for data plans ranging from 256 MB to 20 GB, as well as basic cellular plans with 30 calls, 100 SMS and 100 MB, and the largest plans with 100 calls, 140 SMS and 5 GB. The value analysis of the different cellular carrier plans when calculated in the national currency of each country, showed the vast differences within the range of consumer prices. The results? Italy, Poland, Romania, France, UK, Luxemburg and Finland have the lowest prices. For example, a basic cellular plan with 30 calls, 100 SMS and 100 MB in France takes the place for the lowest price at 4,10 Euros which...
The Czech Parliament has approved a government plan to guarantee the short-term rights of British citizens in the country in the event of a “no-deal” Brexit. The lower house approved the plan in January, and the upper house, or the Senate, followed suit in a 72-1 vote on Wednesday, AP reports. The plan means that the roughly 8,000 Britons currently living in the country would retain their rights immediately after Brexit, even if Britain crashes out of the EU in March with no deal. They would retain basically the same rights as citizens of EU countries for a transitional period until December 31, 2020. “The goal of the law is to prevent serious complications” those Britons might face, Interior Minister Jan Hamacek told lawmakers. Author: red
The unemployment rate in the Czech Republic swelled to 3.3% in January from 3.1% in December, due to typical seasonality during winter months, according to the Czech Labour Office data released on February 8. “The situation on the labour market has been usual in the past month. Compared to previous years, however, it is more favourable,” the Office said. According to Labour Office General Manager Katerina Sadilkova, a decline in seasonal work has been recorded especially in construction and agriculture. The number of the unemployed amounted to 13,523, a decline compared to December’s figure 44,171. There were 245,057 jobless people, the lowest January value since 1997. The number of vacant jobs increased by 7,043 month-on-month to 331,453 and by more than 200,000 vacancies y/y (100.725 vacancies in January 2018). “The average share of unemployed people reached 3.2% last year, ie, one percentage point less than in 2017. At the moment, however, it is already at such low levels that room for a further decline this year is already relatively small,” according to ING Chief Economist Jakub Seidler. Akcenta Analyst Miroslav Novak expects the same: “Since this year, no more significant decline in the unemployment rate is expected, and the total share of...
December industrial production fell by 1.4% due to the lower number of working days and fall in car production. For the whole of 2018, industry grew by 3% but this marks a deceleration from the 6.5% pace in 2017 and we expect a further slowdown this year due to the weaker automotive sector. Industrial production declined by 1.4% year-on-year in December. However, this was partly due to one missing working day and adjusting for that, industry would have grown by 1.8% YoY, similar to the rate seen in November, though below the whole year average of 3%. Automotive fell, which might be typical December volatility The main reason behind the weaker December figure was a 7% fall in the production of cars and machinery equipment. However, car production was growing at a surprisingly strong rate in October and November, so lower production in December could be a result of company holidays. December’s industrial figures are usually quite volatile so we shouldn’t draw strong conclusions from them. Automotive segment grew at a weak pace in 2018 For the whole of 2018, the automotive sector grew by just 1.9%, the weakest rate since 2013. However, a number of significant domestic industrial segments maintained solid growth momentum last year, albeit slightly weaker than in 2017. Industry will slow down further this year For this year, we...
The Czech Parliament’s lower house has approved a government plan to guarantee the near-term rights of British citizens in the event of a “no-deal” Brexit. The plan means the roughly 8,000 Britons currently living in the country would retain their rights in the immediate aftermath of Brexit even if Britain crashes out of the EU in March with no deal. They would retain basically the same rights as the citizens of EU countries for a transitional period until Dec. 31, 2020. The upper house, the Senate, is also expected to approve it. Britain is due to leave the EU on March 29. After the British lawmakers rejected the divorce agreement Prime Minister Theresa May negotiated with the bloc, the prospect of a “no-deal” Brexit has been raised. Author: red
The Czech Parliament’s lower house approved a proposal drafted by Communist lawmakers to tax the compensation that the country’s churches receive for property seized by the former Communist regime. After the Communists seized power in Czechoslovakia in 1948, they confiscated all the property owned by churches, which were allowed to function only under strict state control. According to a 2012 law, the nation’s churches, including the Roman Catholic Church and the Jewish community, are to receive around 75 billion crowns over 30 years to compensate for property seized by the state. A power-sharing deal that Babiš, signed with the maverick Communists last year gave them a role in governing for the first time since the country’s 1989 anti-communist Velvet Revolution. The taxation was one of the Communists’ key conditions. Babiš argues that the compensation is too generous and needs correction. The upper house, which is controlled by the opposition, is expected to reject the Communist plan. But the Communists and the coalition formed by Babiš’ centrist ANO movement and the leftist Social Democrats hold a majority in the 200-seat lower house and can override such a veto. The anti-migrant, populist Freedom and Direct Democracy party also joined forces with the Communists....
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