Josef hírek

2010.10.17. 11:06

Gov t MPs submit "crisis" tax bill to Parliament

<p>Budapest, October 16 (MTI) - MPs of governing Fidesz submitted to Parliament late on Friday proposals that would levy extraordinary taxes on telecommunications companies, energy suppliers and retail chains to plug the country s deficit.</p>

Prime Minister Viktor Orban announced the planned "crisis taxes" at an event on Wednesday. The taxes are to raise a combined annual 161 billion forints from companies in the three sectors in 2010-2012.

    Companies will pay the crisis taxes for 2010 on net revenue from 2009, the proposals published on the website of Parliament show. The tax base for companies whose business year is not the same as the calendar year will be net revenue from the last business year closed before December 20, 2010.

    Retail companies will pay 0.1 percent on revenue of 500 million (1.8 million euros) to 30 billion forints, 0.4 percent on revenue of 30 billion to 100 billion forints and 2.5 percent on revenue over 100 billion forints. Revenue under 500 million forints will not be taxed.

    Telecommunications companies will pay 2 percent on revenue up to 500 million forints, 4 percent on revenue between 500 million and 5 billion forints, and 6.5 percent on revenue over 5 billion forints.

    Energy suppliers will pay 1.05 percent on all revenue.

    The tax must be paid by December 20, 2010.

    The government has said the taxes, together with a decision to suspend payments to mandatory private pension funds, will ensure Hungary meets its deficit targets of 3.8 percent of gross domestic product (GDP) for 2010 and under 3 percent of GDP for 2011.

    The crisis taxes were formulated in such a way that they will not destabilise companies or cause any to collapse, government spokesperson Anna Nagy said at a press conference on Saturday.

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