Telecommunications will be probably shifted to higher VAT bracket since 2004

Komentář
Investiční bankovnictví KB

      Telecommunications services should be transferred to from 5% VAT bracket to 22% bracket ahead of the Czech Republic’s entry to the EU. Ministry of Finance should prepare an amendment to the VAT act in April 2003, which should include these changes.

       It will depend on a reaction of individual telecommunications operators, but if the VAT change would be fully transferred to consumers it would lead to a 17% price increase, which will have negative effect on their behavior. Cesky Telecom is already now facing shift of traffic to mobile networks and is being criticized for its price policy. We expect that this unforced price increase would lead to a negative reaction of the customers.

      

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.