Hungary’s PM Budget Draft To Go Before Next Govt Session

  • 10 Apr 2015 11:00 AM
Hungary’s PM Budget Draft To Go Before Next Govt Session
The economy ministry’s draft for next year’s state budget will be submitted to the government at its next session, Prime Minister Viktor Orbán told public radio. Orbán said that he expected the budget to be passed by parliament before the end of the spring session, adding that an early budget would increase predictability.

Concerning details of the budget draft, the prime minister said that the tax benefit for families with two children would be increased and the banking tax was “very likely” to be lowered.

Further, the advertisement tax would also be reduced, but he added that a proposed top rate of 5.3% would be too low. Orbán said it was “not likely” that the corporate tax would be made a flat tax and reduced to 10% in 2016.

Concerning a proposal to ensure compensation for investors impacted in the Quaestor affair, Orbán said that the economy ministry would start consultations with the banks and other partners immediately.

Under the ruling Fidesz proposal, the financial sector would be required to pay contributions to the compensation fund, but under effective agreements with the European Bank for Reconstruction and Development and with Hungary’s banking association the government cannot levy any new tax or contribution on the sector without prior consultations.

We will “only support the proposal if it is acceptable for players of the financial sector,” Orbán said. “I think it is viable,” he added.


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