Constitutional Court rejects bill taxing financial restitution to faith groups


The Czech Constitutional Court has rejected legislation under which money returned to faith groups under restitution would be subject to taxation. The decision was announced on Tuesday by the court’s chief justice, Pavel Rychetský.

A group of senators from the Christian Democrats and other parties had petitioned for the overturning of the legislation, under which a tax of 19 percent would be imposed on financial restitution to churches.

Legislation to that effect was approved earlier this year by MPs from the coalition of ANO and the Social Democrats as well as members of the Communist Party and Freedom and Direct Democracy.

Tens of billions of crowns worth of property is being returned to churches under divisive legislation passed in 2013. However, not all assets can be handed back and the faith groups are receiving financial compensation over a number of decades.