Chamber passes VAT changes that will now go before president

The Chamber of Deputies on Wednesday approved changes to the Czech Republic’s VAT rates that will come into effect next year. The Senate had previously rejected the plan to raise the basic VAT rate to 15 percent and the higher rate to 21 percent. The legislation now goes before the president, Václav Klaus, who has criticised the change. If Mr. Klaus does veto it, a previously approved single VAT rate of 17.5 percent would come into effect in January, raising the prices of foodstuffs, medicines, health supplies and other items. At present the country has VAT rates of 14 and 20 percent.

Author: Ian Willoughby