Czech gov’t cuts VAT across service sector
Tuesday March 31, 2009
The Czech government has announced it has approved the cut of value added tax (VAT) across its service sector.
A bill was approved to lower VAT from 19 per cent to nine per cent for sector businesses including restaurants, hair salons, household cleaning and home nursing services.
The bill will need to be approved by both chambers of the Czech parliament and be signed by President Kraus before being enforced.
Miroslav Kalousek, finance minister, said the lower VAT rates "will have the biggest impact" on restaurants across the country.
He added tax was lowered on labour intensive services in the hope to make it possible "to hold onto employment in this sector".
The Malta Hotels and Restaurants Association recently called on the country’s government to reduce the VAT rate on restaurant services.
It claimed a reduction the VAT rate would boost consumer demand and also create increased employment opportunities across the sector.