Finance Ministry proposes three VAT rates as of 2015
The Finance Ministry has proposed introducing three VAT rates as of 2015, the ctk news agency reports citing ministry sources. This would include the current standard VAT at 21 percent, a reduced 15 percent VAT rate and a lower rate of 10 percent for selected products such as medicines, books and baby food. Contrary to expectations, the Finance Ministry has not included nappies in the lowest rate, on the argument that this is in violation of EU norms and Prague would be unlikely to get an exemption. The proposed draft bill also envisages a series of measures to fight tax evasion.