Government weighing VAT change, says Fiala

The Czech prime minister, Petr Fiala, says his government is considering changing the country’s VAT system. In an interview with the Czech News Agency, he said doing away with two VAT rates would deliver greater clarity and stability. He said any such change would come about within a revision of the cabinet’s policy programme, though that would not involve any radical steps.

Novinky.cz reported that instead of the current 10 and 15 percent VAT rates there should be one rate – of 13 or 14 percent – from next year.

The prime minister said the government would publish a plan to reform the Czech pension system this year and would focus on reducing the budget deficit in 2024.

Mr. Fiala also said there was agreement among the five-party coalition on defence spending increasing to 2 percent of GDP from next year.