28.03.2022 19:52 | Conversation
Although the government is preparing several measures to help the business environment, otherwise everything has remained the same. At least Jan Dočekal, vice-president of Svobodný, thinks that in an interview with ParlamentníListy.cz he says: almost in liquidation, for example, the liquidation factors of rising energy and fuel prices”, says Dočekal, according to whom there is no reason why the government should artificially exempt a company which does not survive in a market economy from taxes, that is, from the money of all of us.
The last month of March is coming, which companies and individual entrepreneurs have always associated with tax reporting. In this context, I would therefore like to ask you how do you think the business environment in our country has improved or deteriorated over the past year?
The business environment has clearly deteriorated. Although we may see minor changes for the better in terms of abolishing EET, easier processing of work permits for Ukrainian citizens, etc., on the other hand, for many entrepreneurs, such as road transport, there are almost liquidating factors in rising energy and fuel prices. Then there are new details such as the mandatory data boxes for the dog shelter. Does a guild club or swingers club really have to have a data box? Otherwise, everything is the same. Excessive bureaucratic burdens, state regulation and state reluctance to relax current barriers remain. I could cite dozens of ineffective directives, orders, bans and regulations across all disciplines. The vast majority of them would leave quietly and nothing would happen.
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The covid crisis was replaced by the Ukrainian crisis, which would have an even greater impact on Czech companies, not only because of economic sanctions, but above all because of extreme inflation. Do you see it like that?
Among other things, the Ukraine crisis has further exacerbated the breakdown of current global supply and demand relations. Trade flows and the production of essential raw materials in virtually all areas are disrupted. And it doesn’t matter whether it’s wheat or the production of cable harnesses for the automotive industry. This whole situation places enormous demands on the logistics and forces the companies concerned to look for alternative solutions. Sometimes that is not possible for a sin. We are talking about the production of neon lights and other components, for example. The impacts on Czech companies are indisputable. But somehow I hope Czech companies will be able to handle it. We are known as a flexible nation that always finds a solution even in adverse circumstances.
How do you think the Czech government is doing in this crisis? Despite all efforts to help war refugees, isn’t he forgetting the problems of Czech companies?
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Ukraine is clearly the number one topic. It’s the grateful media. The photo of Prime Minister Fiala in Kyiv spends a week in the media, but knowledge of the government’s economic measures is minimal. I don’t want to be a bad prophet, but I’m afraid that within the general “helping euphoria” you are right and that domestic issues are a bit behind. And there are a lot of these problems. I will randomly mention the rise in the prices of energy and fuels, which will translate into an increase in the prices of all goods.
Do you know the food, clothes and many other things you can buy without a truck bringing them to you? Maybe just activate some software on your computer. But this is an exception to the rule. We know the result, we have a word for it. Inflation. Is this what we want? The government should deal with excise duty regulation, try to get out of the global trade in emissions allowances, reject the Green Deal, etc. These are not just business issues, but it affects each of us personally. Unfortunately, in the enthusiasm to help Ukraine (against), we sometimes forget to help ourselves.
What do you think the government should do in this regard as soon as possible? And what measures would you advise the government on, say, on the one hand?
Above all, the government should revive economic growth. The question is how to achieve this. It can choose the path of subsidies, redistribution and subsidies or, conversely, the simplification and transparency of all economic processes. We are in an exceptional situation where thousands of Ukrainian workers come to us, some of whom are highly qualified. Most of them are women, there are many teachers, doctors, nurses, cooks, etc. I understand that the integration of these war refugees into society will cost a lot of money, but I am convinced that in the long term it is an absolutely exceptional opportunity. how to increase GDP growth. It is up to the government to make the most of this historic opportunity.
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Free people keep saying that even in today’s tough economic times, they will support tax cuts. Wouldn’t this already jeopardize the already decimated state budget? So what would I pay for pensions, health care or social services?
From the very beginning, we have argued that there are a number of totally unnecessary expenses, that we have a number of unnecessary institutions, that we want a lean and efficient state. What is the purpose of the National Wine Fund, the Czech Tourism Agency, EGAP and several other institutions? What are the subsidies for non-profit political associations for, why is the number of civil servants increasing almost every year? All of this is paid for by taxes. Unnecessarily! I will give a simple example – rising energy prices, thanks to which part of the population falls into so-called energy poverty. The government wants to make a direct contribution to affected households. What does it mean? We will hire other officials to assess the applications, check their suitability, hire inspectors to check whether Mrs. Nováková did not cheat in the application, all this will cost a lot of money, these officials must have offices, computers, their main company car…and all under the slogan “we help the needy”.
But the so-called middle class is not necessary? Aren’t they poor enough to have an easier life? After all, it is the middle class that brings in money for the rest of society. The more the state pushes for redistribution, the more it will plunge into poverty those who have hitherto paid taxes and allowed money to be transferred (through the state mole) to the poor – so that in the end we will all be impoverished. Wouldn’t it be easier to cut taxes at a flat rate and not pay budget nonsense?
Many companies are now hampered by broken supplier-customer relationships due to Russia’s economic isolation. There are even companies that are at risk of going bankrupt. In your opinion, should the Czech government get involved in this area and make proposals on how to help these companies and keep thousands of jobs?
No. In the past, wars, recessions and many other economic disasters have taken place. There is no reason for taxes, that is, money for all of us, to artificially keep alive a business that does not survive in a market economy. Yes, it can happen that a company is economically dependent on the import or export of certain components from Russia or Ukraine. And it can easily happen that the disruption of these supplier-customer relationships leads to insolvency. From the perspective of an outside observer, through no fault of his own. It’s not the management’s fault that he didn’t expect Putin to go crazy. But as cruel as it is, such an enterprise has no right to continued existence. Not for an existence subsidized by our money. It’s just bad luck. They say a horrible ending is better than endless horror. And in these cases, this is true without exception. There is often a thousand times the mantra that we will save jobs. It’s not true. We are the country with one of the lowest unemployment rates in Europe. I’m not afraid that a good person won’t find a replacement job.
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author: Karel Vyborny