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Czechs May Raise VAT to Boost Budget Revenue, Mlada Fronta Says

The Czech Finance Ministry may propose unifying the value-added tax at 19 percent in the middle of this year to boost state budget revenue, Mlada Fronta Dnes reported, citing a ministry document.

Raising the VAT rate to 19 percent in the middle of the year would increase budget revenue by about 25 billion koruna ($1.3 billion), the newspaper reported. The Czech Republic now has two VAT brackets, at 14 percent and 20 percent, and the government plans to unify the tax rate at 17.5 percent next year.

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