Finance Ministry: Higher tax on industrial zones could raise more money for municipalities

Municipalities across the Czech Republic could raise more money if local councillors are given the ability to specifically tax properties located on industrial zones, according to the Ministry of Finance, which is working on the legislation. Currently, Czech municipalities are able to raise only a fraction of what their counterparts in Germany raise through this specific tax, according to a developer commissioned analysis. Finance Minister Alena Schillerová (ANO) believes that if local councils are given the chance to tax these specific properties, without targeting residents. She told Czech Television that the specific amount of the increase is still negotiable.

The Association of Towns and Municipalities has been arguing that more money from the state budget should be allocated to these areas of administration, because, in the words of the director of the association, they are shown to be very good managers. However, the finance minister says she is not willing to make changes in budget allocations.

Author: Tom McEnchroe