Czech PM says plans single 15 pct personal tax rate

...Topolanek was quoted as saying in a newspaper interview published on Monday.

"We are still discussing tax breaks and other issues behind this rate. The devil is in the detail," Topolanek told the business daily Hospodarske Noviny, confirming earlier reports which have mentioned a 15 percent rate as a possibility [ID:nL17647670].

The single tax rate would replace the existing four-bracket progressive tax scheme. Czech media have said the drop in budget revenue would be offset by a rise in the lower, preferential value-added tax bracket to 9 percent from 5 percent now.

The tax revamp is part of a package of measures that Topolanek's right-of-centre government is drafting to overhaul public finances, which have slipped into the red due to surging social spending.

Topolanek said "fundamental" changes to social spending were needed from 2008 to prevent the state budget deficit from shooting up to 180 billion crowns ($8.58 billion) next year.

He said his coalition government would unveil the first fiscal proposals on April 3.

The three rightist and centrist coalition parties have exactly half of the seats in the lower house of parliament, the same as the leftist opposition.

The government only won a confidence vote in January with the help of two opposition defectors.

Topolanek said he was counting on what he called his "fragile majority" -- presumably including the two rebel leftist deputies -- to help his government enact its fiscal plans.