Czechs oppose Austrian tax proposal

The Czech Republic on Tuesday opposed Austria's compromise proposal on new VAT rates for the 25 countries of the EU. Prague together with Warsaw remain critical of the deal because they are eager to extend exemptions on VAT rules that were given to them when they joined the EU in 2004. Hungary and the Baltic states have said they are ready to accept the compromise solution. Like all issues regarding tax harmonization in the EU, the list of exemptions from normal minimum VAT rates must be unanimously approved by all member states.