Agriculture and food industry warns against VAT hike impact

17-07-2011

Representatives of the Czech agriculture and food industry have warned against devastating effects a planned hike in VAT might have on the country’s farmers and food processors. The head of the Federation of the Food and Drink Industries, Miroslav Toman, told Czech TV on Sunday if the government goes ahead and raises the VAT rate to 19 percent, the industry might shrink by up to 20 percent as a result, while food prices will increase by some 25 percent, according to the head of the Czech Agrarian Chamber, Jan Veleba. The center-right government is considering raising the VAT to 19 percent to make up for falling tax revenues.