Budget of the Czech Republic in 2015

Posted by bara 27/11/2014 at 12h29

Governmental coalition The Czech Social Democratic Party, ANO 2011 and the Christian and Democratic Union gained the support of the social partners and the regions for the draft budget for next year. The approved budget reflects government priorities under the Government Policy Statement and it is an important step for positive changes in the Czech Republic. The budget envisages a deficit of 100 billion crowns.


The approved budget will stabilize health care, lower taxes for families with children, lower taxation of drugs, indexation of pensions and it will also improve the remuneration of workers in the public sector. State employees' salaries will increase by 3.5 percent from November 2014 minimum wage of employees in the business sector will increase from January 2015. It is one of the pro-growth measures that will increase greater household consumption and individual consumption. Tax credit on second and third child increases and tax credit for working pensioners will be restored.

The Ministry of Finance expects spending 1.219 trillion crowns and revenue 1.119 trillion crowns. Ministry for Regional Development will record largest annual increase of money, total by almost 26 percent to 14.7 billion. The largest decline in revenue confesses Ministry of Environment, and almost 28 percent to 9.4 billion. Most chapters of the budget get more money than this year. Only 14 out of 42 will likely be less.

Ministry of Labour and Social Affairs has been traditionally the largest expenditure (half the total - that means more than 533 billion crowns). This is an increase from the approved budget for this year by 1.5 percent. The Ministry of Justice also gets more money - salaries of the security forces should increase by five percent.

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The minimum wage will be increased in the Czech Republic

Posted by bara 27/11/2014 at 12h28

The Czech government adopted a proposal for a minimum wage increase. It comes into effect on 1 January 2015. The minimum wage will increase from the current 8, 500 CZK per month to 9, 200 CZK per month or from the current 50, 60 CZK per hour to 55 CZK per hour.

The Regulation applies to the valorisation of wages to employees whose wages are not established in in collective agreements and workers in public services. Increasing the minimum wage does not apply to employees in receipt of disability pensions; for these people remains the minimum wage CZK 8,000 per month or 48.10 CZK per hour. This measure is important for stabilization of this specific group in the labour market.

The minimum wage was increased to the current 8,500 crowns a month in August 2013. Between 2007 and 2012 the minimum wage was not increased which means that the purchasing power of workers earning the minimum wage is low. The stagnation of the minimum wage contributed to the fact that the amount of the net minimum wage is currently not sufficient to cover all personal needs (for example housing costs). Czech Republic reflects developments in other developed countries. Minimum wage should achieve in the future to 40 percent of the average wage (currently around 10 000 CZK.) However, economists doubt the benefits of higher minimum wages.

Hand with money

Economic evaluation of policies guaranteed minimum wage

A minimum wage worker receives three percent, which means 100 to 120 thousand people. Increasing the minimum wage is important for all workers, as a minimum wage must increase tariffs for each occupational group. Increasing the minimum wage can be bad for businesses. The rapid growth of the minimum wage harms especially companies with a high share labour costs and it but also affect economically less developed regions. This measure means that higher minimum wages cause deformation in the higher income groups. The impact of increased minimum wage will feel every economic entity. Regulation on the minimum wage in the business sector also reduces the competitiveness of domestic companies. It also can affect the development of unemployment. An expansion of the shadow economy is another negative aspect of raising minimal wage.

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Czech has its own virtual currency Czech Crown

Posted by bara 27/11/2014 at 12h20

On 17th July 2014, the Czech Republic has had its first virtual currency. His name is Czech CrownCoin (CZC) and created her six-member team led by cinematographer TV Nova Ladislav Faith. CzechCrownCoin is a digital currency for internet transactions intended primarily for Czech citizens and businessesmen.

Hand with card

Digital currency began circulating a few years ago. The most successful is bitcoin, which came into circulation in 2009. Father of the virtual currency became a Japanese hacker hiding under the cover name Satoshi Nakamoto, who used it in its P2P network as a universal currency. Experimental currency is quickly transformed into the demand tender, which was reflected in its strength. An one year ago, one bitcoin was around $13, today it is already $956. Although the actual coins and bank notes can not be find in the concept of bitcoin, accept it already and some shops, and also in the Czech Republic. We pay them roughly 25 stone and online stores in the Czech Republic. In Prague this spring began work on the first ATM purchase and sale of Bitcoin.

For residents of Argentina is the only salvation, as annual inflation is around 30% and the government banned exchanged for dollars or euros, limiting the purchase of gold. Another reason for the popularity of bitcoin is that the transaction does not and no thanks to anonymous users are their owners untraceable. The same principle works necessary services such as Goldcoin, DigitalCoin or Litecoin. With its own means of payment already working well for years to be online betting company and makers of computer games. Its currency has for example Amazon online store or social networking site Facebook.

The European Banking Authority warns consumers that unregulated virtual currencies pose a great risk. Their deposits are in no way protected, for example, in the case of an attack by hackers or unsuccessful transfer of money. Her fate and use it for the time being in the stars, the distribution of this exchange will be launched in September 2014.

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Czech economics increased

Posted by bara 25/07/2014 at 12h28

In the first quarter of this year, the gross domestic product was increased by 2.9%, that means by 0.4 percentage point more than it was expected in the previous estimate published on 4 June. According to the refined estimate, the gross domestic product (GDP) for the first quarter 2014 adjusted for price effects increased by 2.9%, year-on-year, and in the quarter-on-quarter comparison by 0.8%. The GDP development was positively influenced by increasing domestic and foreign demand as well as very low comparison basis of the last year.


Correction of the previous estimation year-on-year GDP growth from 2.5% to 2.9% caused mainly correct wrongly completed questionnaires and model calculations for statistically surveyed businesses with updated using administrative data on value added tax.

Historically the highest comparable GDP level was reached by the economy of the Czech Republic in the third quarter of 2008 right before impacts of the global financial crisis related to the fall of Lehman Brothers investment bank. Performance of the economy measured by q-o-q GDP changes underwent major fluctuations during the last five and half years. A sharp drop by 5.6% in total (that lasted for three quarters) was followed by gradual recovery by 4.8% in total (during 2 years). The second wave of recession that started in the third quarter of 2011 was longer (it lasted for 7 quarters), however, it was not so deep – the total decrease did not exceed 2.7%. Starting with the

In the sekond quarter of 2013, the economy is again growing, quarter to quarter; for the last four quarters it was by 2.9% in total and thus it is only 1.0% under the level of the maximum from the third quarter of 2008. The development during the last two quarters indicates that the GDP growth has been gradually accelerating.

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Unification of consumer rights in the EU

Posted by bara 21/07/2014 at 12h07

The principle of unification of national legislation, which is controlled by the directive of consumer rights, prevents to members of EU if they want introducing new or retain existing different rules. Members of EU had included changes in consumer right to their legislation until 13 June 2014. From this date must be all these legal systems regulating relationships between consumers and traders in the entire EU put into effect. The reason for these changes in all EU countries are ensure a minimum standard of protection and also fully release the consumer market and ensure the same rules to all EU citizens. The bad implementation of changes means sanctions from EU.

Flag of the European Union

In the Czech Republic were the directives of consumer rights incorporated into the new Civil Code, which was revised after almost half a century and came into force in early 2014. The Czech Republic fulfilled the correct date changes, but the introduction of these changes contains a lot of mistakes. An example might be to eliminate the consumer's right of withdrawal from service contracts – Civil Code, the law does not give the consumer if the services were met before the deadline for withdrawal. However, the directive recognizes the right to cancel the contract until the time of service in full. The Czech Republic disregarded some of the rules. For example, the 30-day deadline for delivery of the goods, if this were not parties agreed delivery time. Furthermore Czech directive does not contain a right of withdrawal of subscriptions to newspapers and magazines. The fundamental error is to limit the automatic cancellation of the loan in the amount of five thousand during withdrawal, which are protected in the Czech Republic, those who have contracted a distance, but not to those who have concluded away from business premises.

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Did you know about the possibility of retroactive payments?

Posted by bara 11/07/2014 at 08h28

In certain cases, this tool can mean only one chance to get your money from a dishonest merchant back. The condition is that the consumer paid his purchase by credit card on the internet. An example might be a bankrupt of Malév Hungarian Airlines. Passengers who paid for flights of the carrier by credit card, received their money overwhelmingly back. Those who pay for the services ordered by cash or bank transfer, were not so lucky.
credit cards
Bank tool called Postpay or chargeback is not original bank product, it is an additional service to the cards by Visa Europe and MasterCardEurope company to have a certain advantage for cardholders against consumers paying in cash. Most often, it is used when buying on the Internet and use transport goods on delivery. if a customer does not receive what ordered cash on delivery, he is dependent on the complaint process. If the trader does not communicate, help a court. However, if the customer paid by a card, he can requests the bank for assistance and demands the return of his funds using the retroactive payments. Basically, bank of consumer asks the merchant bank for the return of amount paid. This procedure can be used in case of problems when customer is buying on the internet in domestic e-shops or retailers in other EU countries. It helps in situations where the customer did not get what he paid or he was charged more money. Among other typical claims ending by chargeback are unpaid cash at an ATM, duplicate payments at merchants and other fraudulent payments via the Internet, flight cancellation, the customer who bought the tickets by card, additional billing transactions from merchants and counterfeit cards. The retroactive payment can also ask if the trader denied the right to withdraw from the contract or cannot meet its obligations due to insolvency. Banks are not required by law to carry out this retroactive payment. If customer has a problem, he should immediatelly contact his bank at first and request that retroactive payments. The application is suitable to support by documentation (copies of communication with the trader or confirmation of the fact that a trader was in bankruptcy). Number of chargeback keeps growing, which is associated with a higher frequency of use of credit cards.

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Medicaments and diapers will be cheaper?

Posted by bara 16/06/2014 at 11h36

A change of the tax system comes with a new government. Planned changes in seemingly positive direction - goods and services will be cheaper. It depends on a margin of retailers and also on the development of individual markets. The design of the convergence program for the European Union prepared by the Ministry of Finance counts with three rates of value added tax. The coalition parties have agreed to reduce VAT on medicines, books, nappies and baby food irreplaceable from 15% to 10% from the beginning of next year. At present the VAT rate is set to 15 and 21 percent. These tax rates should be reduced by 1 percentage point. The reduced rate of 14 percent should be for food, water, heat and transport. The rate on other goods and services will be 20 percent. It has also been proposed to unify these two rates to 17.5 percent. In addition to the five per cent reduction in value added tax medicines, books, diapers and baby food but yet everything else in a negotiation depends on whether these proposals manage to push through parliament.
These products should be cheaper by about 4 percent. In the business sector, however, changes in the VAT rate mean confusion and administrative burden. Chamber of Commerce long criticized the constant change of rules that very burden and prevent long-term business planning activities. In addition, some economists criticize the tax cuts that have not been in a period of recession, but now in a period of mild economic recovery, which may mean unnoticeable lower prices for consumers, increase margins and thus profits of retailers and especially noticeable decrease in the state budget. It means 16 million which could be missing in the state budget. Increase the tax credit for the second and each additional child. It is also in negotiations the government.
Now people apply the tax credit to 24 840 CZK per year per taxpayer. In the case of children's tax credit CZK 13,404 per year. Ministry of Finance propose increase annual tax discounts for second and each additional child CZK 14,604 per year. All these changes must be approved by Parliament and we can wait for the final coalition agreement.

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Time of holidays is coming – do you know the trip can be complained?

Posted by bara 09/06/2014 at 12h07

Travel agency as a tour organizer is responsible for ensuring that the tour will be in accordance with the contract, whether services are provided herself or another provider (hotel, airline). A complaint can deal directly with the travel agent or with another travel agency, if the trip was conveyed. The trip is described in a written contract or written confirmation of the trip in writing. If these documents do not contain precise description and refer to specific catalog number, it is advisable to store the description of the trip (in the catalog or on the Internet). It's also a good idea to keep an eye on that information to you in a travel agency told orally, was consistent with other documents.
If the during of the holiday inconsistent with the information provided in the contract, the travel agency has the obligation to provide redress. Your needs are different according to the seriousness of the shortcomings and possibilities of their removing At first, the travel agency must ensure the continuation of the tour at the cost of lower quality of service. The difference in price should be financially compensated Conversely, higher standard always paid the travel agency of their own. If it is not a substantial defect (such as chartered hotel with aqua-park and sports complex, which is currently reconstructed), the right of customers to refuse completion of this tour and be transported back home. If this is a problem that can be solved on the spot (for example, the view from the rooms or amenities), it is necessary to act immediately and notify your delegate, the situation is different from the contract and require immediate correction or confirmation in writing that you claimed defect. Any defects need to have somehow documented. It is best to take photos of room status, outlook, etc. It is also good to have a written confirmation from the carrier or the staff or the testimony of other participants of the tour. To remedy specify a time limit, if the problem is not resolved (for example, not to ensure a certain hour transfer to the hotel), you can call a taxi cost to get your cash travel agency. If the problem can not be removed (perhaps missing the promised pool) you are only entitled to financial compensation. 
An example might be the Frankfurt table discounts, according to which actions are mainly German courts. It states part of the solution of deficiencies and their corresponding discounts that customers grant the courts (for example, in the absence of the pool from 10 to 20% of the tour price). You have 30 calendar days to filing a complaint of the tour from the end of the trip. Travel agency must be within 30 calendar days of the request. In case of rejection, you can prevent out of court.
You have to be vigilant when ordering via internet tour. In the past, everything was finally in effect since the contract is signed. Today, in some cases, you can order a trip obligatory by one-click. Although the contract is concluded via the Internet, this type of contract is a legal exception, there is not 14 days to withdraw. So in this case, a travel agent may (rightly) require cancellation fees.

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Czech e-shops are still breaking the law

Posted by bara 30/05/2014 at 09h30

Shopping Cart

1st January 2014 new Civil Code has entered into force and it defined who shall to pay postage in the case of purchase through distance communication (internet, phone)  when returning the goods. Here is clearly stated that these transport costs paid by the seller. Customers have 14 days to familiarization and testing of goods. If you are not satisfied with them, you have a right to return it without giving a reason and claim refund of the full purchase price, including shipping.

Sellers are devising tricks for circumvent the law. For example they offer the option of picking up the package at a physical store. The vendors often claim that the goods while they have been ordered over the internet, but they do not want to recognize customer´s 14 day right of withdrawal because there was a classic contract of sale concluded according to their interpretation of the law. The vendors proceed against the law.

It should be noted that it is not a decisive the way how are goods delivered to the consumer, decisive is the way to conclude a purchase contract.When the contract was concluded on the internet, the seller can´t deprive the right to withdraw from the contract within 14 days that will allow consumer to test or inspect the goods.

The new legislation says is that the cost of delivery to the customer must be returned only to the amount of the cheapest means of transport which the operator of e-shop offers. Most often it will be ordinary postage payment in advance. However if you pay more expensive shipping, seller is not obliged to pay the whole amount. The law requires the seller to pay only the price of an ordinary postage.

Customers are often faced with additional practice of some e -shops how no to return all the money for costumers. These are various service charges that trade accounted for placing the returned goods in original condition. These fees are illegal. However, customers should be aware that within 14 days to the examination and testing of the goods shall not result in apparent wear and tear of its intensive use.

For defence of online retailers is important to say that some customers abuse this 14-day period and they make free rental from e-shop. Unclaimed consignments are next problems for e-shops, because they cannot claim damages. Reimbursement transport of unclaimed consignment means wasted money for vendors.

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Situation in Crimea

Posted by bara 13/05/2014 at 12h26

Each of us has seen civil unrest in Ukraine. In recent days, however, attention has shifted much of the world from Kiev to the Crimea. Can tensions between Ukraine and Russia escalate into a military conflict? Citizens of Crimea voted to join the Ukrainian peninsula to the Russian Federation. For connect voted about 95 percent of voters. Turnout by Russian media exceeded 80 percent. The Russian president has his signature a decree recognizing the independence of the Crimea. 
Western countries (including the Czech Republic) do not recognize the referendum and threatened Russia with sanctions. Both the EU and America want to freeze the foreign assets of persons who have helped this situation. The challenge to the fierce action against Russia at the premiere of Bohuslav Sobotka turned a former ambassador to Russia and the former Minister of Defence Luboš Dobrovský, former minister Michael Kocab and Martin Bursik and Senator Jaromir Stetina. 
The government would have had to freeze the issuing of visas to Russians, Russians freeze accounts in the Czech Republic and stop the entry of Russian business in the country. "We demand that the Government at home to: 1. immediate stop issuing visas to citizens of the Russian Federation, 2. cancellation of the possibilities of receiving dual citizenship for citizens of the Russian Federation from 1.1.2015, 3. freeze accounts of Russian citizens in the Czech Republic in order to investigate the legality of these deposits, 4. stop entry of Russian business and capital to the Czech Republic, 5. cancellation of the tender for the construction of new nuclear reactors at Temelin." The Prime Minister Bohuslav Sobotka disagrees with such sharp steps.
What is the current situation for the Czech economy?
Five percent of domestic exports travel to the Russia. If we had the basic raw materials, especially oil, we would not be able to immediately replace this loss, which could severely hamper Czech industry. It would also be a problem if they were cut off natural gas supplies. In this case, it could not only Czech but also European economies again end up in a recession. We could have observed an increase in prices of a barrel of oil and cereals during Ukrainian crisis.
Trade War with Russia may harm tourism: if due to sanctions reduced the number of Russian tourists in the Czech Republic, would disappear in tourism around 20,000 jobs. Total domestic tourism works 230,000 people, said the consulting firm Mag Consulting. 759,000 Russian tourists visited the Czech Republic in the last year. The total amount that you spend in Czech stores by tourists from countries outside the EU consists of 51 percent of Russian people. Most sales would decrease in Prague and Karlovy Vary.


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