Outrage over VAT hike for pension reform

"While 100,000 people are saving books, the government is saving its reform," headlines Mladá Fronta DNES, referring to the petition launched by Czech publishers against the proposed pension reform. Funding for pensions is come from creating a single flat rate VAT at 20 percent, as opposed to the current system ranging from 5 to 19 percent, according to item. Prices for books and print media, currently taxed at 10 percent, will shoot up, publishers fear. "The three parties of the coalition government are still discussing pension and VAT reform," explains the Prague daily. One proposed alternative is to impose a single flat rate VAT of 17%. But the effect of that would be paradoxical, because "the price of food [currently 5 percent], media and medication would increase while prices of cars, tobacco, alcohol and electronics [currently 19%] would drop." "Pension reform is turning into a farce," writes Hospodářské noviny with some regret from its corner. "Instead of pension reform, we’re discussing the death of books and intellectual regression. Instead of having a people who save, we have a people dejected by higher prices."