Document 28 - Amendment to the Act on the Budgetary Allocation of Taxes

Processed date: 19.11.2025 |Session 10

Submitters: Marek Výborný, Marie Kršková, Jiří Horák, Petr Hladík, Jana Filipovičová

Summary

The Act fundamentally changes the method of distributing shared tax revenues to regions and increases their total share in taxes from 9.76% to 10.26%. It introduces a new calculation model based on objective criteria such as the number of inhabitants, kilometres of roads, area, number of schools or emergency departments, which will be updated annually. A separate additional share of 0.1% of shared taxes is newly introduced for the capital city of Prague, in addition to the general redistribution among regions. At the same time, the existing subsidies for class II and III roads are being abolished and their financing is transferred directly to shared tax revenues. The proposal is effective from 1 January 2027 and also repeals the ineffective provision of the previous consolidation amendment, which was supposed to change the share of regions from 2025.

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Additional documents

Additional document 1

Chamber of Deputies Print 28/1 Government Opinion on Print 28/0

Processed date: 13.12.2025

The Government has taken a neutral position on the MPs’ proposal to change the budgetary determination of taxes. It points out that the proposal does not take into account recent legislative changes, contains legislative technical flaws and inappropriately uses the criterion of urgent revenues that are already financed by health insurance. At the same time, it warns against further weakening of the state budget revenues in favour of the regions without a corresponding reduction in expenditure.