Lower VAT on some goods possible, if basic rate grows -Kalousek

In a discussion programme on the private TV channel Prima Family, Kalousek said he makes this conditional on agreement in the government coalition, though.

VAT rates are to unify at 17.5 percent next year under the law.

Kalousek has thus reacted to a proposal by the opposition Social Democrats (CSSD) who want the 10 percent VAT rate to be kept on books, printed material, blind and deaf aids and on health and social care for children and elderly and disabled people.

"If we managed to come to agreement in the coalition, and I will open the debate not for the year 2012, but for the coming years, that it won´t be 17.5 (pct), but 19 (pct rate), for instance, then I can easily imagine that books, medicines and newspapers would be in a lower tax bracket," said Kalousek.

He, however, would not specify if this would be a 10 percent rate.

CSSD chairman Bohuslav Sobotka said in the discussion programme that his party was in favour of preserving the lower VAT rate. He said he considers its abolition "stupid and unreasonable."

Sobotka repeated that the CSSD wants to introduce income tax progression in order to cut the state budget deficit.

According to Kalousek, taxation of labour is the biggest problem. Social and health insurance payments make up 45 percent of the tax payments, he said.

Author: ČTK
www.ctk.cz