Local resistance is rational in the Czech Republic. Cities get nothing from industrial construction

From the international comparison, it emerged that in the Czech Republic, the local population actually only has to bear the unpleasant consequences of the construction and operation of industrial enterprises. On the other hand, the amount of income that municipalities receive from similar projects in the neighborhood is much lower than in western countries.

If I had a house right next to the industrial zone, I wouldn’t like it either, said Ondej Votruba, executive editor of the association for foreign investments AFI and former editor of CzechInvest. He thus referred to the most famous examples of the recent protest of local residents against the construction of the gigafactory in Lnch near Plzeň or the new one in Lower Lutyń.

For the Czech municipality, the main part of the income from production leads is real estate tax, while for the neighbors it is business or general tax in the case of Austria. Unlike the domestic tax, these do not only take into account the extent of the mortgaged land, but also how the companies are doing business and how high the wages are to be paid to their employees.

Therefore, KPMG experimentally set up a new production plant with 140 employees in a small town (about 1,000 to 6,000 inhabitants) in all these countries. After ten years, such a scam would have paid 2.8 billion crowns in taxes to the municipality, but only between seven and 101 million crowns, depending on the chosen property tax coefficient.

Compared to that, the same model town in Austria from the same manufacturer would receive 146 million crowns and Austria 2.6 billion. In Germany, even 908 million crowns would flow into the general coffers, from which many projects can be created, such as tolls, the order of high-quality public transport and others, which can at least partially compensate the population for the negative effects of the operation of a factory or other commercial waste.

According to the general editor of the development company Panattoni, Pavel Soviky, it is understood that the resistance of the inhabitants of Czech municipalities against new constructions is noticeable not only abroad. It does not in any way motivate the management of the municipality to take an interest in the development of employers in their cadastres.