Hungary's new government will overhaul the tax system
Hungary is preparing sweeping changes to its tax system. Prime Minister Péter Magyar stated that the government will repeal some of the taxes introduced during Viktor Orbán’s tenure and revise the rules for large businesses.
The government also plans to tighten requirements for companies that pollute the environment and make the tax system simpler and more transparent. The draft bills are expected to be submitted to parliament in the near future.
Hungarian Prime Minister Péter Magyar announced plans for a large-scale tax reform. The head of government announced the new measures on July 17. According to Magyar, the government intends to broaden the tax base for companies and gradually phase out the so-called “selective” taxes that were introduced under former Prime Minister Viktor Orbán.
One of the key decisions will be the elimination of tax breaks for multinational companies. In addition, the government plans to abolish the previously existing carbon credit levy and double the tax on companies that pollute the air. The government will pay special attention to large industrial enterprises. Special inspections will be conducted on the biggest polluters, after which additional high fees may be imposed.
According to Magyar, this should compel companies to comply with the strictest environmental standards in effect across the European Union. “We will make the Hungarian tax system simpler, more transparent, and fairer,” the prime minister stated. He also announced that the government will release all details of the reform after July 17. On the same day, the relevant legislative proposals are scheduled to be submitted to parliament for consideration.
It is expected that once the new rules are adopted, tax conditions will change for both large international businesses and companies whose operations have a significant impact on the environment. According to the government’s plan, the reform is intended to make the tax system more transparent, uniform for all market participants, and more efficient for the state. This was reported by Bloomberg.
During a meeting of the EU Council’s Working Group on Enlargement (COELA), Hungary blocked the launch of the procedure to open negotiation clusters No. 2 and No. 3 for Ukraine as part of the European Union accession process.
