Prague officials clash with government over transport funding and VAT

Prague city officials have issued a call to the government to protect municipal savings from being redirected to national projects. The city council expressed concerns that proposed changes to VAT laws could force transport operators to pay an additional 21% VAT, potentially increasing ticket prices and costing up to six billion CZK annually. Additionally, Prague is protesting the potential cessation of contributions from the State Fund for Transport Infrastructure (SFDI) for local road repairs and metro expansions.

On the national level, Transport Minister Ivan Bednárik stated that the proposed state budget does not include the planned increase of public transport discounts for seniors and students from 50% to 75%. He cited a lack of sufficient resources to implement this change by January 2027, prioritizing other expenditures instead.

However, the budget for the SFDI is expected to increase by approximately 13 billion CZK next year, reaching 183.1 billion CZK. This increase is intended to bolster investments in highway construction, railway modernization, and waterways.