Chamber says standardised VAT should be set at lower level

01-03-2011

A leading business lobby has come out against government moves to introduce a single rate of Value Added Tax at the current higher rate of 20 percent. The Chamber of Commerce said the move will have a negative impact on business. The chamber added that a uniform rate of 17 percent would be sufficient to finance the government’s planned reform of the pension system. The criticism means that both business and labour unions have lined up against the government’s proposal. Prime Minister Petr Nečas has said he has no intention of changing the main line of the VAT and pension reform.