The governing coalition has agreed to seek a 15 percent flat tax on income, Prime Minister Mirek Topolánek told Hospodářské noviny March 26. The tax will be of least benefit to the country’s middle class, at least in the short term, he said. The government will present its full slate of proposed public finance reforms April 3.

The Cabinet has replaced six of the State Transport Infrastructure Fund’s nine executive committee members, Hospodářské noviny reported March 26. The state’s sale of 7 percent of ČEZ, announced March 19, is expected to finance the fund’s highway-construction costs for the year.  

The European Commission is threatening to sue the Czech Republic over the lack of power the Anti-Monopoly Office (ÚOHS) has in regulating the telecom industry, Právo reported March 26. The office cannot properly punish cartels and abuses of the market, the EC said. The country has two months before the case is forwarded to the European Court of Justice.

Škoda cars will be sold in Australia beginning this October, the Web site www.carsguide.com.au reported March 23. The company’s full line will be distributed by Volkswagen Group Australia. Škoda had hoped to enter Australia last year but was delayed by pricing issues and lack of consumer awareness.

Anheuser-Busch has won its most recent case against Budějovický Budvar, the Associated Press reported March 21. An Italian appellate court affirmed Anheuser-Busch’s control of the Budweiser trademark in Italy, canceling Budvar’s three trademarks in the country. The court also ruled that Budvar could not use Budweiser as a protected geographic indication in Italy.

The Finance Ministry has proposed an amendment increasing the minimum coverage auto liability insurers must offer their customers from 18 million Kč ($860,000) to 35 million Kč, the daily Mladá fronta Dnes reported March 23. The amendment, which follows a European Union directive, could come into effect this June and increase premiums 5 percent.

The European Commission has announced that Czech food producers can no longer use the name “pomazánkové máslo” for a domestic butterlike spread, the daily Lidové noviny reported March 21. Under EU regulations, products labeled butter (máslo in Czech) must contain 39 percent dairy fat, and pomazánkové máslo, at only 34 percent dairy fat, falls short.