Finance minister says VAT is here to stay

Finance Minister Miroslav Kalousek says that the Value Added Tax increase is definitive. Mr Kalousek told a meeting with managers organised by the weekly Euro that he did not believe that any future government would decrease the VAT, even if they promise to do so before elections. He also rejected criticism that the government has creased unprecedented tax hikes. Last week Parliament overcame the opposition to raise VAT rates by one point to 15 and 21%. From 2016 the rates should be unified at 17.5%.