The Czech government last week agreed a wide ranging package of tax and public spending reforms designed to ease a swelling public budget deficit.
One of the reform package's hallmark features is an across-the-board 15% tax rate, which represents a massive cut for the highest earners currently paying a top rate of 32%.
As well as the single personal tax rate, company tax would be cut to 19% in stages by 2010 from the current 24% and the lowest rate of VAT raised from 5% to 9%.
Czech trade unions representatives voted to stage a massive demonstration in Prague on June 23 unless key concessions on the tax and public spending package were made by the government. They warn that the changes will benefit the richest 10% in the country with the rest of the population being worse off.
Copyright Agence France-Presse, 2007