Emerging coalition parties debating tax changes as of 2015

The parties of the emerging coalition government are debating tax changes as of 2015. Social Democrat leader Bohuslav Sobotka told Czech Television on Sunday that the proposal currently being discussed envisaged three VAT rates as of 2015 – a standard rate and two lower rates with medicines falling into the lowest category. The fallout in state revenues would be compensated for by higher corporate taxes. Details of the emerging agreement are still to be finalized. The Social Democrats, ANO and the Christian Democrats say they have made significant progress on policy matters. A debate on the division of ministerial posts has been postponed until mid-December.