- VAT on food products in the Czech Republic will be reduced from 15% to 12% starting January 2024.
- Retailers assured the government that this decrease would be reflected in lower prices for shoppers.
- However, the President of the Union of Trade and Tourism revealed that food prices will actually rise in the new year.
- Producers have alerted retailers to a 10-15% increase in the cost of products.
- The decision by the Energy Regulatory Office will substantially increase electricity costs for producers.
- The government has declined assistance, so a 3% VAT reduction won’t bridge the gap.
- The Minister of Agriculture expressed disappointment and questioned why products in Czech supermarkets are 70% more expensive than in Poland.
- The government does not have legislative tools to intervene in the market and influence pricing.
- The Minister intends to pressure retail chains and encourage the Office for the Protection of Competition to take a more active role.
- Rising electricity and fuel costs have led to a 3-5% price increase by the largest Czech producer of dairy products.
Source: praguemorning.cz
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
