PRAGUE – The Czech government is re-submitting unpopular austerity measures designed to help bring the country's budget deficit below 3 percent of GDP.
The lower house on Wednesday rejected a 1 percent increase in the sales tax on retail goods and a 7 percent income tax increase for the highest-earners.
The parliamentary refusal came after six lawmakers from the conservative Civic Democratic Party of Prime Minister Petr Necas voted against because they said the tax hikes are against their party's values.
Necas said Thursday a new vote should take place in three months and the government is linking it to a confidence vote. If that vote also fails, the coalition government will fall.
The government wants to reduce the deficit to retain the confidence of the markets.
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