TNBiz (TNBiz)
Taxes and Accounting  |  October 27, 2012 10:53:46

Public Affairs asking the government not to increase VAT and left diapers at a reduced rate

PRAGUE (MEDIAFAX) - House lawmakers draft of Public Affairs, according to which in the next year remain unchanged rate of value added tax (VAT) unchanged at 14 or 20 percent, will discuss on Wednesday the government. Ministers to take him probably a negative opinion against all government departments.

Both the VAT rate should unite under current legislation from 1 January to 17.5 percent. In the House, however, so-called stabilization package, which increases the current tax rate by one percentage point to 15 and 21 percent.
But disagrees with him six MPs from the Civic Democrats, Budget Committee Chairman Paul Suchanek (ODS), have on behalf of Prime Minister Petr Necas (ODS) filed amendment compromise proposal that would have increased by only one percentage point lower rate standard would remain at 20 percent.

The package is loaded too many other amendments, for example, already from Public Affairs to leave this year's rate. If the third reading, which may be held as early as next week, MPs proposal of assent over Nečas government as prime minister consolidation package combined with a vote of confidence in the Cabinet.

Parliamentary proposal was submitted, which will deal with ministers on Wednesday, Michal Babak (VV) would also like to see changed or inclusion of individual products to which the reduced rate is applied. It should be such as medical devices or diapers because of the decree of the European Commission to shift to the standard rate, even when it threatens their step rise from next year. "The government's bill addresses this problem and proposes to reclassify these products to the basic rate of tax," he writes in a comment on the draft Treasury.

"In 2012 there was a relatively sharp rise in inflation. Reduced VAT rate increase in 2012 by four percentage points marked by the Czech National Bank's inflation increase of 1.1 percent. Together with other factors such signed the bad economic situation. There is a serious concern that the unification of VAT to 17.5 percent next year would also mean an increase in inflation, "says Babak submission of the grounds, but do not like the ministries that excludes government consolidation package that the rates had separated.

Jan Drahorád,

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