Czech govt approves temporarily cutting VAT on electricity, gas to ‘zero’ from current 21 pct

Minister of Finance Alena Schillerová said the government has approved an amendment that will reduce the value added tax (VAT) rate on electricity and gas from 21 percent to zero for the coming year. The move comes in response to soaring wholesale energy prices on world markets.

According to Schillerová, if passed by the parliament, the zero VAT rate will also apply for this November and December. Unless approved also by the European Commission, waiving VAT on energy sales would contravene the European Union VAT directive.