The Czech government will take into account the interests of small towns
and villages in reaching agreement on an amendment to the law on budgetary
tax redistribution, Prime Minister Petr Nečas assured the mayors of over
1,000 smaller towns who demonstrated outside the Office of the Government
on Wednesday. The mayors came to show their support for a draft amendment
on tax redistribution prepared by the Finance Ministry, but criticized by
the prime minister’s Civic Democratic Party.
The proposal would raise tax-based revenues for the 6 000 or so small
towns and villages by a total of 13.5 billion crowns. Municipalities with
2000 to 10,000 inhabitants would profit most from the change. At the same
time it would strip the four biggest cities – Prague, Brno, Ostrava and
Plzen – of a total of some five billion crowns for the benefit of
smaller
municipalities. The prime minister said his party was ready for a
compromise that would ensure that large cities would not get more than
three-times the amount given to small municipalities in the redistribution
of tax yields.