If the bonds are not totally sold or the real expenses for the flood damages recovery are higher than the income from bonds, the Government intends to raise funds through further taxation. The most likely suggestion is that VAT rates would be raised.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Paul Antrobus or Richard Fletcher, Arthur Andersen Prague on Tel: +420 2 2440 1300.

You may also wish to read through related material on the Czech Republic provided by Arthur Andersen. You can view the entire archive via the Internet on Business Monitor Online (http://www.businessmonitor.co.uk), or via your online provider by entering "Arthur Andersen" and "Business Monitor" as a free text search.