Pirates propose 6% VAT on selected food and hygiene products

The opposition Pirate Party has proposed introducing an additional reduced value-added tax (VAT) rate of six percent, which would apply to selected food and hygiene products. According to Pirate MPs, the measure is intended to improve affordability and ease the impact of current and expected inflation. If adopted, the amendment would reduce public budget revenues by approximately CZK 5.9 to 7.5 billion annually.

The Pirates propose including mainly fruit, vegetables, legumes, rice, millet, groats, milled grain products, eggs, pasta, plant-based oils, drinking water, and baby and infant food in the second reduced VAT rate. Among hygiene products, the six percent rate would apply to sanitary pads, tampons, and baby diapers.

According to Pirate MPs, the current VAT rates of 21 and 12 percent do not allow for sufficiently targeted tax relief on a narrow group of goods with significant social importance.