The Czech Cabinet approved a draft law changing the value-added tax aimed at financing a planned overhaul of the pension system, Prime Minister Petr Nečas said. Under the proposed bill, which must be approved by parliament, the lower VAT bracket will rise to 14% from 10% next year, while the upper bracket will stay at 20%, in line with an agreement among the three ruling- coalition parties. The VAT rate will be unified at 17.5% from 2013, Nečas told reporter in Prague Wednesday.
