Ministry suggests lowering value added tax on high-speed internet services

The Ministry of Trade and Industry has put forward a proposal aimed at cutting prices of high-speed internet connections in the Czech Republic. As part of an initiative to bring the internet to more households, the ministry is seeking to lower the value added tax rate on high speed connections from the current 20 percent to 15 percent over the next five years. The proposal, which was announced on Wednesday, would need to be approved by the Ministry of Finance. Opponents of the measure say it would increase the state budget deficit. Roughly half of all Czech households have web connections.