Over half of Czechs agree with government's fiscal reform, but many still critical

Around half of all Czechs believe that the government’s large austerity package – announced last week – is “necessary,” although 40 percent do not understand it. 

A survey by the Median polling agency showed that about 75 percent of all Czechs do not expect the proposed changes to reduce their cost of living. The majority of people also believe that these measures have come too late and that the proposed changes will not solve the growing state debt.

The fiscal reform is intended to reduce the state budget deficit by CZK 94.1 billion next year. The value-added tax (VAT) system will be simplified by reducing one bracket and removing over 20 tax exemptions, while other taxes will go up. 

An overwhelming majority (over 80 percent) of people who support the parties in the current government coalition view the proposals positively. Seven in 10 students support the government’s plans. However, just one in three voters of the ANO movement, the largest opposition party, back the new changes. 

There is a correlation between age and support of the fiscal package, with older generations less likely to support the financial proposals. This is likely because the pension growth will, due to recent changes, slow substantially in the next decade.

When asked who should give the most to the state savings, 27 percent said all groups should contribute equally, whereas 12 percent said firms and businesses should be the primary contributors to savings. 

A majority of people disagreed with the government’s decision to keep still wine without VAT. Over half also agreed with VAT on books being abolished.