Government MPs approve hike in lower VAT rate

In related news, government MPs on Friday approved raising the lower VAT rate affecting some goods and services from the previous 10 to 14 percent. The move will raise the prices of medicines, foodstuff, public transport, as well as books, newspapers and concert tickets in 2012, Mladá fronta Dnes reported. Finance Minister Miroslav Kalousek told the daily that by conservative estimates the lower VAT rate increase would bring in an additional 22 billion crowns. The prime minister, meanwhile, stressed that the increase would not be dramatic but the opposition Social Democrats have said that they will lower the rate if they win the next election, at least regarding food and medicine. Petr Nečas’s centre-right government aims to unify the existing higher and lower VAT rates at 17.5 percent in 2013.

Author: Jan Velinger