Czech VAT Increase to be Resolved

Politics ♦ Published: September 4, 2012; 18:28 ♦ (Vindobona)

The Czech government wants to increase the tax intake by € 1.0bn. Economists warn of a deepening of the recession.

Czech VAT Increase to be Resolved / Picture: ©

At the moment, the Czech Parliament discusses the VAT increase. The reduced tax rate should be lifted by one percentage point to 15%. The normal VAT rate is planned to increase from 20% to 21%. Thus, in 2013, the tax intake should increase by € 1.0bn. Already in August, the Czech government initiated the tax reform.

However, the oppositional social democrats could prevent the…