A Parliamentary document, where deputies from ODS party are suggesting a cancellation of a tax on the acquisition of real estate was issued. The deputies would like to cancel this tax without any supplement. The proposal was sent to the government to express a standpoint. Till now it has not been determined when would be voted.The reasons for cancellation of this tax are firstly low tax incomes (to the state budget is collected 9 billion CZK annually) and secondly the fact that purchases of properties is realized from net income (i.e. these purchases are subject to double taxation).
The consequences of the abolition of this tax would be obviously lower income to the state budget (by the above mentioned 9 billion CZK), but there would also be cost savings on administration of this tax up to hundreds of millions CZK. Aditionally ODS party assumes increase of investments in property and increase of income to the state budget from other taxes (especially from income tax and VAT).
Cancellation of the tax on acquisition of real estate was one of the points of ODS election program for elections to the Chamber of Deputies in the year 2013.
If you are considering a purchase or a sale of real estate, it is probably better to wait for the final decision of deputies (i.e. if a tax will be really cancelled or not).
