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Budget Bill 2015 (photo: Károly Árvai - MTI)

Ruling Party Rejects “Luxury Tax” In 2018 Budget Bill To Be Submitted By The End Of Next Month

The Hungarian government is expected to submit the 2018 budget bill to the Parliament of Hungary on April 26, ruling Fidesz group leader Lajos Kósa said.

Fidesz rejects increasing taxes and favours laws that reduce the burden of tax on Hungarians. The party will support the reduction of VAT on fish and a number of other tax cuts as long as they do not endanger budgetary stability, he said. Kósa said that opposition Socialist prime ministerial candidate László Botka’s proposals would involve higher personal income tax, the introduction of a progressive tax and the introduction of more property taxes. Fidesz is against these and also rejects the proposal “to hand out free money”, he added.

Earlier this week the Economy Minister also said in an interview published by daily Magyar Idok that „unlike the opposition parties, the government is not mulling introducing any new tax.” Mihály Varga reacted to the recent announcement of the Socialists of a policy aimed at a “more fair sharing of the public burdens”. “It would be rather immoral to burden those with new taxes who have purchased for instance a new home for themselves or their families from their net income already taxed,” Varga told the paper. He said the government would instead guarantee central revenues by quelling the black economy. To this effect, it connected tills online to the tax office and launched an electronic monitoring system (ekaer) for road haulage companies.These measures have generated 200-300 billion forints in extra revenues for the central budget over the past two years, Varga said.

Unveiling policy details, Lászlo Botka, the opposition Socialist party’s candidate for prime minister, said that they would impose a “luxury tax” on incomes over 1 million forints (EUR 3,200) a month, affecting some 100,000-200,000 families. He said the tax would increase central revenues by an annual 300 billion forints (EUR 0.96bn), which could be used to cut taxes for low earners. Botka also proposed that properties worth over 100 million forints, as well as cars or other belongings worth more than 10 million forints should be taxed.

via hungarymatters.hu and MTI; photo: Budget bill in 2015 (Károly Árvai)