Court upholds Czech tax revenue allocation formula for regions

The Czech Constitutional Court has rejected a petition by 32 senators seeking to overturn the formula used to distribute shared tax revenues among the country’s 14 regions. The senators argued that the law does not allow regional shares to be updated to reflect demographic or other objective changes, leading to unequal funding and differences in public services. However, the court ruled that the current system is constitutional. Under the existing formula, the Central Bohemian Region receives the largest share of tax revenues, about 13.8%, while Prague receives the smallest, at roughly 3.2%. The Moravian-Silesian Region receives around 9.6%.