VAT increase in the Czech Republic

The two keys of VAT will be increased by one-one percentage points to 15 and 21 percent – from January in the Czech Republic. The Czech government accepted the Finance Ministry's new reform package on a Wednesday.

The government measures designed to reduce the state budget deficit in 2013 and in 2014 under three percent of the GDP.

According to Eurostat, the VAT rates are increasing in the EU since 2008. The average is 21 percent this year. The standard VAT rate is the lowest in Luxembourg (15 percent) and the highest in Hungary (27 percent). (MTI, Kokes jános)