Sobotka slams planned VAT hike

The opposition Social Democrats have slammed additional reform plans to be discussed by some government ministers on Monday, coming out against the finance minister’s plan to raise the VAT to 20 percent and other measures. According to Social Democrat leader Bohuslav Sobotka the raised VAT would slow the economy and negatively impact tax revenues; in his view, the country’s centre-right government needed to raise taxes on firm and reintroduce a progressive income tax rate instead. In the opposition party’s view, lower-income families will be the hardest hit if the plans go ahead.