Czech Republic’s Ministry of Finance to Shut Down 77 Financial Offices to Increase Efficiency and Save Money

The Czech Republic’s Ministry of Finance has announced that it will close down 77 out of 201 regional offices of financial authorities by July. The decision was made after analyzing public usage and the services provided by each office. The ministry aims to increase efficiency and save up to 150 million CZK (USD 6.7 million) in the next three years while maintaining the quality and accessibility of financial services for citizens and businesses.

Of the 77 offices to be shut down, 56 already operate in a limited capacity. The Financial Administration plans to use the skilled workers from these offices elsewhere. The ministry will offer an exceptional telephone consultation service and increase visits to municipalities during tax declaration periods to replace the lost services.

According to Minister of Finance Zbyněk Stanjura, the closure of offices will contribute to the greater efficiency of the Financial Administration. The reasons for the shutdown are mainly to save costs, followed by the fact that some offices are underutilized. The third reason is that alternative services can be offered in affected communities and cities.

The Czech Republic currently has 201 regional offices of financial authorities, 98 of which are controlling offices that manage the remaining 103 regional offices. Between 2016 and 2020, 56 out of 103 maintained offices were transferred to an optimized regime that provides for the presence of two financial office workers on two working days.

As a result of this streamlining, the number of regional offices will be reduced to 124, the number of controlling offices will remain the same, and the optimized regime will be abolished. The skilled workers from the closed offices will be redeployed to other financial authorities.

The ministry hopes that the reduction of operational costs will lead to savings. According to Gabriela Krušinová of the ministry’s press department, no layoffs are planned. Krušinová explained that most closed offices operate on a two-plus-two schedule, meaning two days a week with two workers. These employees must travel to other offices to work the remaining days.

The closure of offices is expected to increase the efficiency of the Financial Administration and streamline services while still providing quality financial services to citizens and businesses.