Reforma zdanění přidané hodnoty
Reform of value added taxation

Summary/Abstract: The author first addresses the history and present of value added tax before proposing its abolition, and outlines a number of related reforms. According to the author, value added taxation has many shortcomings which, together with high tax evasion rates, limit the essential development of, inter alia, Czech social security. The reform of the “first generation” value-added tax in the EU will not be easy; the most significant obstacle concerns lobbying. The optimal option for this reform is to replace this tax with a wage tax and broadly conceived corporate and self-employed income taxation (business tax); according to the author, both can be merged with the current taxation of personal and corporate incomes, including employer social security contributions. Supplementary taxes should be collected without delay from the Czech financial sector.

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