Heger: Health care to lose CZK 4.5bn without tax changes

Prague, Oct 23 (CTK) - Unless the controversial package of tax changes is approved, a higher lower VAT rate and the preservation of health care caps would strip Czech health care of about 4.5 billion crowns next year, Health Minister Leos Heger (TOP 09) told CTK Tuesday.

If the package aimed to stabilise public budgets, the VAT rates would be united at 17.5 percent according to the previously approved legislation.

Heger said hospitals and other health care facilities would face the impact of higher VAT on medicines, health materiel and food.

Now the Czech Republic has two VAT rates, 14 and 20 percent. Under the package of tax changes, the rates are to be raised to 15 and 21 percent next year.

However, this is what six rebelling lawmakers from the senior government Civic Democratic Party (ODS) do not like and they are pressing on Prime Minister Petr Necas (ODS) to make changes to the package.

The rebels have not accepted Necas's compromise proposal to raise only the lower rate from 14 to 15 percent for one year and than switch back to the current rates.

Heger said health care providers could still save some means if they rationalised treatment by preventing the double prescribing of medicines and repetition of the same examinations, for instance.

Heger said health insurance companies do not have not much room to save money. If they saved, this would afflict doctors, he said.

But Heger said he will demand that the companies' revenues and spendings be the same next year.