Government seeks support from Communists for crucial VAT bill

The ruling Social Democrats have been seeking support from the opposition Communist Party for its bill on VAT that President Vaclav Klaus vetoed recently. The government needs 101 votes in the lower house to override the presidential veto but lacks two MPs because of their health condition. The junior opposition Communist Party reiterated on Saturday that none of the party's deputies will vote for the bill in question. Finance Minister Bohumil Sobotka hopes to persuade the Communists to change their minds and invited party leaders for talks next week.

The VAT bill would lower the basic VAT level from 22 to 19 percent and move a number of items from the preferential five-percent rate to the upper bracket. Failure to pass the bill would seriously complicate Czech trade with fellow EU countries after May 1.