Ahold is one of the retail chains in the Czech Republic that is considering reducing its profit margins rather than increasing prices after the VAT is increased by 1 percent next year. At least this is what company spokesperson Judita Urbánková told the daily Hospodářské noviny. Urbánková said Ahold will focus on decreasing operational costs instead. Makro Cash & Carry’s director for the Czech Republic, Axel Hluchy, takes things a step further, saying his company plans to decrease prices to become more competitive on the tough Czech market. Hluchy doesn’t see how increasing the VAT will help the economy. “This is not good news for the Czech economy, as increased consumption would help boost the economy,” he said. Tesco PLC hasn’t yet decided whether it will raise prices or absorb the cost, according to Hospodářské noviny, citing the chain’s spokesperson Jan William Dvořák.
