Czech opposition calls for 19% VAT rate

Sat 30th May 2015

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.