Mediafax (Mediafax)
Business  |  October 03, 2010 14:53:46

Fuksa: Increase of VAT rate by 6 percentage points marking up the food by about 3%


Mediafax

PRAGUE (MEDIAFAX) - (Report we have expanded in the 2nd paragraph on the next statement of the Minister of Agriculture Ivana Fuks, 4th and 5th paragraph with the statement of Peter Vyhnálek, vice president of the Association of Commerce and Tourism)

Considered the bottom ten percent increase in the rate of value added tax (VAT) on six to seven percentage points would be reflected in the prices of food price rises by about three percent. In Sunday's show CT Questions of Václav Moravec said the agriculture minister Ivan Fuksa (ODS).

"We do not know how galvanizing around competition in the supermarket. But at the last rate increase the prices to some extent hampered, "said Fuksa. At the same time ensure that the socially most vulnerable groups, particularly pensioners and disabled, will come an appropriate compensation.

According to the Chairman of the Group of Communist Party and Shadow Minister for Agriculture Paul Kováčik should decrease the rate of VAT. "If the government raises taxes, producer, take part, another part is transferred to customers by increasing prices and decreasing food quality. And it is already present in the often very poor, "said Kovacik.

Peter Vyhnálek, vice president of the Association of Commerce and Tourism, believes that the VAT rate increase would be reflected in more than three percent increase in the cost. "Will the other factors, such as increasing energy prices. I do not think that it should completely liquidating the consequences, but the cost structure and pricing will definitely change, "warned Vyhnálek.

Response competition, according to him can not be accurately determined in advance. "In addition, never jump takes place today.Against price increases will certainly work, but the exact impact can be difficult to anticipate in advance, "he added Vyhnálek.

Tomas Cizek, cizek@mediafax.cz

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