October 23, 2012 / 10:19 AM / in 5 years

Czech government to pull budget from agenda amid tax row

PRAGUE (Reuters) - The Czech government will remove its 2013 budget draft from this week’s parliamentary agenda, a party official said, amid a rebellion in the ruling Civic Democratic Party over proposed tax hikes that are fundamental to the spending bill.

“The budget will be pulled,” Civic Democrat Vice-Chairman Jiri Pospisil told reporters ahead of a parliamentary session due to start on Tuesday afternoon.

Prime Minister Petr Necas’s cabinet is on the brink of collapse due to the rebellion against the proposed hikes to value-added and income taxes. The cabinet has tied a vote of confidence to the tax bill, which is separate from the budget draft and may come to a vote on Friday.

Reporting by Robert Muller, writing by Jan Lopatka

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