Tax freedom day to be 4 days later on June 19 this yr --Patria

The tax freedom day is a day from which people earn money only for themselves. Until that date, their entire wage goes to the state.

"By our method which uses the ratio between the total tax burden and net national income for calculating the tax freedom day, the day is on June 19 this year, four days later than last year," said Patria Finance chief economist David Marek.

"The main reason is the raising of the lower VAT rate which has raised the tax quota from 34.7 to 35.1 percent of GDP," he added.

The tax freedom day is also calculated by the Liberal Institute (LI) every year.

Last year, Czechs won freedom from taxes on June 15, according to LI. The institute uses the methodology of the Organisation for Economic Cooperation and Development (OECD), or more precisely, its estimates of the share of public finances in GDP, to calculate the tax freedom day.

Tax freedom day by Patria Finance calculations in 1995-2012:

Author: ČTK
www.ctk.cz