Czech upper house backs fiscal reform bill

...reforms aimed at cutting the budget deficit.

The Senate voted 49 to 27 not to discuss the bill, giving it an automatic approval.

The package unifies all personal income tax brackets at a single rate of 15 percent, helping mainly top earners. It also cuts the corporate tax rate, raises the sales tax on food and other basic items, raises payments for healthcare and cuts some social spending.

The bill will become law once signed by President Vaclav Klaus.