RPT-Most Czechs don't see reforms helping public finances

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PRAGUE, Sept 20 (Reuters) - A majority of Czechs believe the government's fiscal reform package will not help stabilise public finances, with most people upset by a preferential value-added tax hike, an opinion poll showed on Thursday.

The survey follows Wednesday's approval of the reforms, designed to slash the overall fiscal gap to 2.95 percent of GDP next year, by the upper house of parliament.

The outcome is another setback for the ruling rightist Civic Democrats (ODS) after they were overtook by the leftist opposition Social Democrats (CSSD) in voter support for the first time since mid-2006 election earlier this month.

High deficits have forced the Czechs to abandon their 2010 euro adoption target, and are now looking at 2012 and beyond as the earliest possible entry dates.

The poll by the Factum Invenio agency among 1,008 people showed 58.6 percent think the package will not consolidate the fiscal balance, while only the fifth said the opposite.

The reforms hike the sales tax, healthcare payments while cutting welfare benefits and personal income taxes, mainly for companies and top wage earners.

The cabinet has said the package would help cut the overall public sector deficit gradually to 2.3 percent of GDP in 2010, from 4 percent seen this year.

Analysts have said the changes would improve the budget balance by some 30 billion crowns ($1.52 billion) next year but have a negative impact by 2010.

Some 80.4 percent of people surveyed expected to be hit by the increase of the preferential value-added tax -- levied on essential items such as foodstuffs or medicine -- to 9 percent from current 5 percent, Factum Invenio said.

Healthcare and social payment changes were also seen as negative by 79.7 percent, and 63.8 percent of the Czechs, respectively.