Civic Democrat rebels holding out against tax-hikes

Meanwhile talks with the six Civic Democrat rebels who are holding out against the government proposed tax-hikes have failed to produce any tangible progress. The prime minister’s compromise proposal to raise only the lower VAT rate by one percentage point, from 14 to 15 percent, while the higher VAT rate of 20% would stay the same, has been rejected by the rebels, as has the concession that a so called “solidarity tax “- an additional 7% tax for individuals earning more than 100 thousand crowns a month would only be in effect next year. The rebel MPs want both of the tax hikes to be taken out of the bill completely. A vote on the controversial tax package has been postponed until next Wednesday giving the two sides more time and space to reach agreement. Any deal reached with the rebels will have to be approved by the Civic Democratic Party’s coalition partners TOP 09 and LIDEM.