PM defiant as Senate rejects government plan for VAT hike

17-08-2012

Prime Minister Petr Nečas on Friday pledged to override the Senate’s veto of a bill that would raise the Value Added Tax rates by one percentage points to 15 and 21 percent, cancel cuts on tax insurance for employees, and raise taxes for people earning more than 100 thousand crowns a month. The tax hikes are one of the key components of the government’s consolidation package aimed at bringing the gap in public finance to under three percent of GDP in 2013. The Prime Minister is confident that the coalition parties will secure the 101 votes necessary for the lower house to overturn the Senate’s decision.