The Finance Ministry is planning to introduce a third rate of value added tax in 2015, Finance Minister Andrej Babiš said. The rate, whose level has not yet been determined, should be lower than the existing rates of 21 and 15 percent, respectively, and should apply to drugs, books, and baby food. The Finance Ministry also wants to make tax collection more effective by establishing a central registry of bank accounts and retail receipts. Details of the Finance Ministry’s plans are yet to be debated within the coalition parties; for its part, the opposition said they would increase the overall tax burden and would make tax evasion easier.
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