More expensive beer in the CR

The price of beer and alcohol in the CR will increase if the proposals are approved by the Ministry of Finance to increase the VAT tax, warned the Czech Union of Brewers. Such a measure would strengthen the black market and will affect restaurants and hotels. They have employed more than 75 thousand Czechs. The purpose of the VAT increase from 9 to 11% and lowest rate from 19 to 20 percent for the high rate is to increase revenue in emerging record deficit in the Republic.

The tax changes will affect alcohol and cigarettes, along with other goods and services. Price increases will be unavoidable, since consumption taxes form 40 to 60 percent of the cost in beer and alcohol. However, this will pave the way for speculation on the market. If the proposals are adopted by Finance Minister Eduard Yanota, 40-degree liters of alcohol will be appreciated by 5 crowns, and half a liter of beer-around krone. The proposal is assessed as a threat to workers in brewing, but also for staff in restaurants.

The latter has already reported a 7 percent decline over the global economic crisis and fewer foreign tourists in the Republic. Sales of beer depend on more than 75 thousand jobs in Czech restaurants and hotels, according to research cited in the consulting company Ernst & Young. The decline in the production of beer is almost 7% for the six months, having produced about 9.200 million hectoliters. Exports decreased by 13% or exports was 1.674 million hectoliters.

––––––––––––––––– ––––––––––

Finance