Stanjura: VAT system change would be budget-neutral

The Czech minister of finance, Zbyněk Stanjura, says a change to the VAT system being considered by the government would have a neutral effect on the budget.

Speaking on CNN Prima News on Sunday, Mr. Stanjura said the aim was to simplify the taxation system and that he would have a draft bill on the matter ready in spring.

The government is contemplating replacing the current reduced 10 and 15 percent VAT rates with a single reduced rate of 13 or 14 percent. It would exist alongside the basic VAT rate of 21 percent that applies to most goods and services.