Czech opposition calls for 19% VAT rate
- European News
- 29 May 2015 | Richard Asquith
The Czech opposition party has called for a reduction in the Czech VAT rate from 21% to 19%.
Czech VAT was increased twice during the financial crisis from 19%. It also introduced a 10% Czech VAT rate in 2014.
The proposal is part of a flat-tax rate idea where all major taxes would be at 19%. So in addition to VAT, income tax and corporate tax rates would also be set at 19%. Non-major taxes, such as on property sales and motorcar ownership would be scrapped. These taxes raise relatively low amounts of revenues but incur major administrative costs.