Draught beer in the Czech Republic with a lower VAT? “This proposal makes sense” – Virtual Poland

Czechs, who drink the most beer in the world, will soon have a reason to consume more of the drink. Finance Minister Andrej Babisz proposed reduction of VAT on draft beer by more than half – from 21 per cent. up to 10 percent.

– This is not a populist proposal. It makes sense – said Tuesday Babisz. He added that the aim of this step is to alleviate the position of the opposition on the issue of mandatory electronic recording sales of products over which currently discussing parliament.

But not everyone in trójpartyjnym government, consisting of the Czech Social Democratic Party (CSSD) led by Prime Minister Bohuslav Sobotka, group ANO 2011 under the leadership of Babisza and the Christian Democratic Union – Czechoslovak People’s Party (KDU-CSL) agree with the proposal of the Minister of Finance.

According to Sobotka reduction of VAT on beer is in contradiction with the government’s strategy aiming at reduction in alcohol consumption. CSSD would prefer to reduce the tax on basic foods.