The lower house on Thursday approved in its first reading a government-proposed bill which would introduce a reduced 10 percent VAT rate on books, baby food and medicines as of January 2015. The basic VAT rate of 21 percent and the reduced rate of 15 percent will be maintained. A final vote on the bill in the lower house is expected in September, after which it will still have to win approval in the Senate and be signed into law by the president.
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