Ruling coalition agrees on changes to austerity package

The ruling parties have reached agreement on a number of changes to the government’s austerity  package aimed at lowering the state budget deficit, Prime Minister Petr Fiala announced after Wednesday's talks with unions and employers. One of the concessions made is that the government will maintain the tax advantage on employee benefits with a limit of half of the average wage in the previous period. Another planned change, compared to the original proposal, is that the VAT rate for magazines and newspapers will be unified at 12 percent, instead of the previously proposed 21 percent rate for newspapers. The excise tax on alcohol will be gradually increased by 10 percent a year in next two years and 5 percent in the following year. The coalition will now present the austerity package to the Budget Committee in the lower house.