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Czech Officials reject call to Harmonize Corporate Tax Rates in EU Member States

Czech Finance Minister Bohuslav Sobotka and Deputy Prime Minister for Economy Martin Jahn have spoken out against a plan by French Finance and Economy Minister Nicolas Sarkozy to harmonize corporate tax rates in European Union member states.

“We do not consider it appropriate to harmonize corporate taxes within the Union,” Jahn told the CTK news agency. He added, however, that the CR was open to the possibility of harmonizing tax bases in order to more easily compare taxes in individual member states.

Sobotka also expressed his opposition to the idea of harmonizing income tax rates, saying that the EU has no right to dictate that element of policy to member states.

According to the Finance Ministry, Sarkozy’s proposal to withhold EU funds from member states with low corporate tax rates was not discussed. Sarkozy, one of France’s most popular politicians, is in Prague on an official visit to meet with senior Czech officials.

The corporate tax rate in the Czech Republic is currently set at 28 %, but is scheduled to fall to 24 % in two years.

(Interfax 05.xi.04)

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