News

The lower house on Thursday approved in its first reading a government-proposed bill which would introduce a reduced 10 percent VAT rate on books, baby food and medicines as of January 2015. The basic VAT rate of 21 percent and the reduced rate of 15 percent will be maintained. A final vote on the bill in the lower house is expected in September, after which it will still have to win approval in the Senate and be signed into law by the president.

The Višegrad Group states and South Korea have agreed to broaden bilateral cooperation in the areas of business, science and culture, the ctk news agency reports. At a meeting in Bratislava on Thursday Czech, Polish, Slovak, Hungarian and South Korean officials discussed potential areas of cooperation. The Višegrad Group countries have attracted plenty of South Korean investors. Most recently the tire manufacturer Nexen chose the Czech Republic for its 23 billion crown investment, a tire plant that is expected to create over 1,000 new jobs.

Hundreds of people attended the funeral of one of the five soldiers killed in a suicide attack in Afghanistan last week. Sergeant David Benes was laid to rest in his home town of Chomutov, north Bohemia, on Thursday. A mass served in the Church of St. Ignac was for family and friends only but the funeral at the local cemetery was open to the public. The soldier was buried with military honours.

The plane manufacturer Aero Vodochody has signed a contract with the American firm Draken International on the sale of 28 of the Czech army’s surplus L-159 combat aircraft. The deal is being brokered by Aero Vodochody since under Czech law the Defence Ministry cannot sell off its surplus equipment directly. The company did not say how much Draken is paying for the aircraft. According to earlier reports the price is from 16 to 18 million crowns for one plane.