Czech parliament approves lower tobacco tax hike

PRAGUE, Nov 8 (Reuters) - Czech lawmakers approved on Wednesday a lower than originally proposed increase in excise tax on tobacco from 2007, matching the minimum level required by the EU and raising the spectre of a shortfall in budget revenue.

A majority of lower house deputies voted for a rider, which curbed the planned tax hike originally put forward by the previous centre-left government.

But the lower house has yet to approve the draft law on excise taxes as a whole in a vote expected later on Wednesday.

Lawmakers agreed to the lower tax hike at a time when Czech public finances are eroding and the fiscal deficit is officially forecast to jump to 4 percent of gross domestic product next year, above the 3.0 percent threshold for joining the euro zone. ((Writing by Marek Petrus; Editing by Mike Peacock; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477))

($1=21.91 Czech Crown)

Keywords: ECONOMY CZECH TAXES