Unlike last year, when massive consumer spending allowed shops and stores
to enjoy record sales, Czechs do not expect to continue with their
shopping sprees in 2004. A drastic value added tax increase that came into
effect on January 1, 2004, has forced them to dig deep into their wallets
and think twice before spending another crown. The VAT was raised from 5
percent to 22 percent on numerous goods and all services including the
post office, telecommunications, the Internet, hair dressers, plumbers,
lawyers, accountants,...the list goes on. Economist