PRAGUE — The Czech Republic has instituted a new system to increase tax revenue by requiring bars and restaurants to report their sales online.
The Finance Ministry hopes the electronic reporting system that went into effect Thursday will generate an extra $700 million in taxes, but critics say it will force watering holes to raise prices or even close down.
Association of Hotels and Restaurants President Vaclav Starek said he expects up to 20 percent of the country’s 40,000 bars, restaurants or hotels to close because of the measure.
Starek said establishments in small towns and villages are especially vulnerable.
Owners have to pay some $1,000 for the equipment needed to be able to report every sale online, along with monthly software fees and the cost of Internet connections.