The Czech Republic's ruling centre-left Social Democratic Party will propose a special tax on banks to help fund schools and infrastructure and keep profits from leaving the country as part of its manifesto for elections in October.
A tax on the Czech Republic's mainly foreign owned banks, which would be on top of the 19 percent general corporate tax rate, could add 11 billion crowns ($433 million) into the state budget each year, the Social Democrats estimate, Reuters writes.

They argue such taxes already exist in 15 other European Union countries, including the Czech Republic's immediate neighbours.

If applied to total assets, the new levy could roughly double the corporate tax paid last year by banks in the Czech Republic and make a significant dent in their profit.

The biggest banks in the country are owned by Belgium's KBC , Erste Group Bank of Austria and France's Societe Generale .Moneta is the biggest listed bank without a majority foreign owner.

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