VAT to fall from 22 to 19 percent

The cabinet has said the higher band of VAT will be reduced from 22 to 19 percent. The change will come into effect on May 1st, when the Czech Republic joins the European Union. The lower band will remain unchanged at 5 percent, although some items will be moved to the higher band. The announcement was made after seven hours of talks on Sunday between representatives of the ruling coalition. The changes mean that items such as cars, electronic goods, clothes and telecommunications should be cheaper from May 1st.