Czech Republic: No VAT Increase

People ♦ Published: September 7, 2012; 19:11 ♦ (Vindobona)

The governing coalition failed in seeking approval by the parliament. In order to lower the budget deficit, the government intended to lift the VAT rates.

Czech Republic: No VAT Increase / Picture: ©

Since the beginning of this year, the Czech Parliament discusses the VAT increase. According to the government´s plan, the lower tax rate should be lifted by one percentage point to 15%. The normal VAT rate was planned to increase from 20% to 21%. In 2013, the tax intake should have increased by € 1.0bn. The VAT increase should improve the situation of the state budget. The increase…