The government’s proposal for a new law on digital taxes and other drafts, among other things, is going to the finals in the Chamber of Deputies with fingerprint ID cards. They are scheduled to be on the agenda for the May meeting starting next Tuesday. However, Czech exporters are concerned about higher taxes on US technology companies due to customs retaliation in the United States. This is reflected in the party’s estimates of rates ranging from three to seven per cent.
An evaluator of the project presented by the parliamentary budget committee Vaklav Vodava (ČSSD) estimated that “the implementation of the digital tax may go on holiday.” He said MEPs should vote on the final third reading next Wednesday after discussing the standard in the committee.
Who will pay the digital tax
The new tax is subject to large technology companies with a turnover of over 750 million euros, i.e. about 19 billion crowns. In the Czech Republic, turnover had to cross 100 million crowns. In particular, the new tax had to be paid by multinational companies such as Google, Facebook, Amazon or Apple. In early 2020, then-US Ambassador Stephen King spoke out strongly against the independent Czech digital tax. The most advanced countries in the world have been negotiating a common digital on OECD for more than two years, but have not yet agreed.
Tax introduction is implemented by all companies in the House under Parliament. With the exception of the ruling coalition, the Social Democrats are for the Communists. The dual volume of Pirates and STAN is compatible with the digital line. The joint plan of these parties is to “strengthen revenue by at least a billion crowns through adequate taxation of digital giants”. The group, namely ODS, People’s Party and TOP 09, promise voters that it will be a “fight against tax evasion by Internet companies.”
However, there is talk among lawmakers that some MEPs are anti-yes. Although it was brought by the model of the head of the state treasury Alena Shillerov (yes). “Large companies doing business in digital technologies pay almost no taxes. Even international express trains do not travel without tracks through the Czech Republic,” the minister said, promising up to five billion crowns a year from the new tax. Schiller expects this rate to be valid from June as the state budget for this year has already estimated $ 2.5 billion in revenue.
However, there is still no consensus in the Czech Republic on how much higher tax companies like Google or Amazon should pay. For example, ODS would reduce the government’s proposed five percent to three percent. Attempts by Social Democrats to raise the rate to the first seven percent have minority support.
“This is a government proposal that has the support of other parties in the chamber. It has a chance to be approved,” said Mikule Bergenak (Pirates), deputy chairman of the budget committee.
However, the new line includes car parts or hospital beds among Czech manufacturers. They fear that the United States will respond with higher fees. This can be detrimental, for example, to Lynette, which has strong competition in the United States.
What else will MEPs decide?
Another parliamentary final is where people will receive ID cards with fingerprints and chips. The standard responds to the regulation of the European Parliament. According to him, the ID card should include a machine-readable section so that the documents meet the minimum security standards set by the International Civil Aviation Organization (ICAO). The SPD requires that the inclusion of biometric data on identity cards must be voluntary.
The final meeting in the Chamber of Deputies is also a draft, which confirms that data cannot be obtained from the phones of entrepreneurs surveyed by the Office for the Protection of Competition (ÚOHS). The government wanted to implement this change with the introduction of the European Telecommunications Code as part of the Electronic Communications Amendment.