Pirates’ proposal to change the taxation of benefits: it could threaten the functioning of the labour market, economists complain.

In the Czech Republic, the labour burden, including taxes and levies, is almost 40 per cent, which is above average compared to OECD countries. Compared to Poland, which has recently become known as the economic tiger of Europe, our eastern neighbour has a more favourable burden by a full five per cent. However, labour taxation in the Czech Republic is compensated through so-called employee benefits, which should de facto offset the above-average taxation. A number of experts have therefore repeatedly argued for their retention. Among them is the head of the Chamber of Commerce, Zdeněk Zajíček (ODS), as reported by iDnes.cz.