Effective from January 1, 2016, value added tax (the “VAT”) on certain goods and foodstuffs such as meat, milk, fish, butter, and bread will decrease from 20% to 10%. The foodstuffs subject to lower VAT are listed in a table annexed to Act No. 222/2004 Coll. on Value Added Tax, as amended. The impact of the VAT decrease on the annual state budget is expected to be EUR 80 million.