- The Czech government has presented a Recovery Package of 58 measures, expected to positively impact the state budget balance by CZK 147.5 billion in 2024-2025.
- The proposal includes changes to VAT rates, with books set to have a 0% rate, magazines at 12%, and newspapers at 21%.
- Food VAT will be reduced from 15% to 12%, but it is unlikely to have a significant impact on prices. Beverages, including soft drinks, will be subject to the standard VAT rate of 21%.
- Water, sewerage, and heat supplies will remain at a reduced rate of 12%, but prices may increase slightly.
- The VAT rate on draught beer will return to the standard rate of 21%, which could increase prices.
- Hairdressing and barbering services will also return to the standard VAT rate.
Source PwC
