Czech PM reportedly mulling special taxes for banks, energy and telecoms

By bne IntelliNews November 16, 2016

The Czech prime minister may seek to introduce new taxes on sectors with little competition, local media reported on November 16.

Citing documents compiled by Prime Minister Bohuslav Sobotka’s advisers, press suggested his coalition-leading Social Democratic Party (CSSD) could push to levy special taxes on the bank, energy and telecommunication sectors. However, it is thought that the move may be little more than a populist gesture.

The documents reportedly discuss waging new taxes on the sectors to curb outflows of dividends to foreign owners. Banking and telecoms in particular are in foreign hands. Similar levies have been in place in Hungary since Fidesz came to power in 2010. The populist Polish government introduced a high banking tax earlier this year, and is seeking to wage a levy on large foreign retailers.

Sobotka has sought to mark himself apart from his populist and nationalist peers in Hungary and Poland, who have angered the EU with the introduction of sectoral taxes that aim at foreign - often Eurozone-based - owners. However, the Czech PM is scrambling to revive the fortunes of the CSSD, which has seen support sliding alarmingly just a year or so ahead of elections.

Analysts appear to think there is little to worry about in the latest report. At J&T Bank they suggest “this is only pre-election rhetoric without big support and … the risk of sector tax is minimal”.

Meanwhile, at KBC they note that Sobotka proposed similar measures ahead of the last election, which saw the CSSD crawl over the line just ahead of coalition partner Ano.  

“This was a story before last elections in 2013,” they remember.” Next elections are scheduled for October 2017, so it seems that the current prime minister would like to play the same cards.”

Related Articles

Czech KMV acquires PepsiCo bottler in Bulgaria

The Czech Republic’s biggest producer of mineral and spring water Karlovarske mineralni vody a.s. (KMV) is buying Quadrant Beverages, the official bottler of PepsiCo in Bulgaria, the Czech company ... more

Penta plans to delist Czech-based betting firm Fortuna

Slovak financial group Penta announced on March 31 that it plans to tender for the remaining shares in Czech-based betting firm Fortuna, and then delist the company. Penta, which holds 68.25% in ... more

CEZ sells MOL stake

CEZ has “conditionally” sold its 7.5% stake in Hungarian oil and gas group MOL, the Czech state-controlled energy group announced on March 30. The report ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss