Final Word from Wednesday, December 19, 2012

MPs will put Václav Klaus in an impossible situation when they vote today to raise VAT and other taxes as of next year. VAT will rise on some items regardless of whether Klaus signs the law, vetoes it, or lets it pass without his signature. Partner Jan Linhart of KPMG wrote in HN today that Klaus would boost his popularity by vetoing the law, but if Klaus did this he would no doubt irk people on the low end of the pay scale who most fear an increase in the bottom VAT rate from 14% to 17.5%. The best of Klaus's bad options, in our view, is to sign the appropriate laws quickly, so that they can take effect on Jan. 1. At the same time, though, he should present his own plan - as a former finance minister - for bringing predictability and fairness to the tax system. Klaus can keep complaining about the Nečas government, or he can draw on his vast experience to make a positive recommendation about what to do next.[Czech Republic value-added tax budget parliament]

Glossary of difficult words

to irk - to anger or annoy;

vast - of very great extent or quantity.

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