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Czechs Plan More Tax Increases to Cut Deficit, Hospodarske Says

The Czech government plans to increase value-added tax rates to boost budget revenue and narrow the deficit, Hospodarske Noviny reported, citing Premier Petr Necas.

VAT rates will be raised by one percentage point, to 15 percent and 21 percent, the newspaper said, adding that the three parties in the ruling coalition haven’t yet agreed on whether to raise income tax for the highest earners.

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