In July the standard VAT rate rose to 22% from 20% and the reduced rate to 9.5% from 8.5% as part of fiscal consolidation measures.

The increase was enshrined in the budget implementation act 2014-2015, which was believed to mean it would be temporary.

However, the Finance Ministry has now decided to put the increase in amendments to the VAT act.

The ministry said Friday that the hike was never meant to be temporary, the only reason it was put in the budget implementation act was that no other changes to the VAT act had been planned at the time.

Now the VAT act will be amended to take transpose several pieces of EU law.

The Chamber of Commerce said today the change ran afoul of commitments enshrined in the coalition agreement that there would be no new tax burdens.

The move also undermines trust in ongoing negotiations on the 2014-2015 social agreement, where the commitment was supposed to be reiterated, the GZS said.