Finance Minister proposes lower VAT in pubs and restaurants

In more business news, Czech Finance Minister Miroslav Kalousek has said that he plans to lower the rate of VAT that consumers pay in restaurants and pubs from 19 to nine percent. The financial daily Hospodářské noviny reported on Wednesday that Mr Kalousek decided upon the move following consultation with the NERV council, which was established to advise the government how best to weather the current global financial crisis. Mr Kalousek said that the move was not in order to make food cheaper for consumers, but for publicans and restaurateurs to make larger profits, so that lay-offs would not be made necessary. The move will still have to be debated in Brussels before it can come into effect.