Proposed tax reforms could make food and books more expensive, say reports

Mlada fronta Dnes wrote at the weekend that the Civic-Democrat-led cabinet wants to introduce a 15-percent flat personal income tax as of 2008 and gradually reduce corporate tax from 24 percent to 19 percent by 2010. Personal income tax currently ranges between 12 percent and 32 percent depending on one's earnings. The introduction of a flat tax would reduce tax revenue, but several papers have reported that the state may offset this by increasing VAT on selected goods such as food, medicines, nappies and books.