The money has allowed the government to improve the nation s infrastructure that is crumbling after communism. The Czech government imposed a Value Added Tax in 1993. The government created the tax to replace a tax system left over from Communism. The tax is similar to those in European Union countries. The Czech government hopes it makes future European Union membership more likely.
Most tourists encounter the tax when buying Czech goods to take home to the United States.
They can get a refund, but most do not. The Czech government hopes tourism will play an even greater role in the country s economic development. The Ministry says declines in the number of tourists in 1998 and 1999 were due to an overestimation of the role of the private sector in encouraging the industry s growth. The Ministry says the government should play a greater role in promoting tourism. The Czech Republic may be faring better than its former Eastern Bloc neighbors.