The move would bring VAT rates to 15 and 21 percent. VAT is set to be unified at 17.5 percent in 2013, to help pay initial costs of the centre-right government's flagship pension reform that will introduce private savings accounts. "This (1 percentage point rise) is the most likely at this moment, but discussions are not over," Necas said on a Sunday programme on Czech Television. He said this would create the least pressure on inflation among the options open. Government officials last month unveiled tax hikes and spending cuts to help the ruling coalition meet its pledge of a gradual reduction in the budget deficit. Discussions had centred around merging the lower 14 percent rate with the upper 20 percent rate at 20 or 19 percent from 2013, while retaining exemptions for drugs, books and newspapers. Necas said there was no discussion of raising the corporate tax rate.