Finance minister proposes raising VAT rates
The Czech Finance Minister has said he wants to raise the rate of VAT in the Czech Republic in a bid to lessen next year’s budget deficit. Speaking on Czech Television on Sunday, Eduard Janota said that he would be proposing to Parliament a raise in the lower rate of VAT from nine to 11 percent, while the higher VAT rate should go up from 19 to 20 percent, he added. Should his proposals be accepted, Mr Janota said that the budget deficit in 2010 would amount to around 160 billion crowns (8.83 billion USD). If no such changes were made, Mr Janota said that next year’s budget deficit would be closer to 230 billion crowns (12.7 billion USD). In the same interview with Czech Television’s Václav Moravec, Mr Janota said that it was ‘unrealistic’ to think about euro adoption before 2014 or 2015 in the current financial climate.