Tax increases expected to lower state budget deficit

From January 2010, the Czech Republic will see an increase in value added and consumer tax. Part of a new package of austerity measures, the increased taxes are expected to generate an additional 23 billion Czech crowns. The Ministry of Finance hopes that the changes will lower the state budget deficit from 230 billion to 163 billion Czech crowns. Most affected by the tax increase are alcohol, cigarettes and automobiles. The price of a half a liter of beer will increase by 50 halers, the price of a package of cigarettes will rise by about 2 crowns in February. Value added tax will increase by one percentage point starting January.

Author: Sarah Borufka