Czech cities resist proposed tax redistribution by ANO movement

Major Czech cities, including Prague, Brno, Ostrava, and Plzeň, are facing potential budget reductions as the ANO movement considers redistributing tax revenues. The proposed plan aims to limit the share of budget-determined taxes received by the four largest cities to benefit regional budgets and the state budget.

Local leaders have reacted strongly to the proposal. Ostrava Mayor Jan Dohnal warned that such cuts could lead to “civil disobedience,” while Prague candidate Tomáš Portlík characterized the move as a “declaration of war.” Conversely, Plzeň Mayor Roman Zarzycký, an ANO member, suggested that any cuts should only target the capital, noting that the Finance Minister has indicated she would reject measures affecting Plzeň.

In Prague, the debate also centers on the city’s massive 200 billion CZK reserve. While opposition candidates from ANO argue the city is over-saving and under-investing in citizen needs, current coalition members defend the reserves as necessary for massive upcoming infrastructure projects, such as the Metro D line and the City Ring, which are estimated to cost approximately half a trillion CZK.