Havlíček: If the EU tears zero VAT on energy, then it will be five percent

At an emergency meeting on Tuesday, energy ministers discussed the measures that states can take to stop the rocketing rise in energy prices.

Havlíček spoke about the Czech plan for the temporary introduction of zero value added tax (VAT) on energy, which was approved by the government in November and December. However, the current EU rules do not allow this, and according to Havlíček, Babiš’s cabinet hopes that, given the difficult situation, the commission will have an understanding for this step and will not file a lawsuit against the Czech Republic.

“At the moment, we do not want to take off our trousers in front of the ford and we want to negotiate the maximum possible advantage, ie up to zero,” said the Czech minister. However, if the commission did not accept the zero tax and initiated proceedings with the Czech Republic, according to Havlíček, the government is ready to adjust the proposal for reduced VAT to, for example, five percent.

However, Tuesday’s meeting did not bring any majority agreement on the solution to the current crisis.

France and Spain have proposed structural reforms of the energy market, while other states, led by Germany, insist that the current crisis is only temporary and that radical action is not needed.