Ministry proposes further changes to bank levy rules

Telco

The National Economy Ministry (NGM) said yesterday that it is proposing to Parliament that it make further amendments on pending legislation concerning bank levy rules following informal signals from the European Commission.

NGM is proposing that for banks with total assets above HUF 50 billion, the bank levy should drop from 0.53% to 0.24%, lower than the initial proposal of 0.31% that the ministry made in November. For banks with total assets under HUF 50 bln the bank levy should still remain at 0.15%.

2009 will be used as the benchmark year for total assets in all cases even in 2016.

The government wants to introduce legislation that is acceptable for Hungarian banks and the European Commissionʼs Directorate for Competition, and that presents a more favorable, flexible and forward-looking solution for banks, said NGM.

Yesterday Parliamentʼs legislative committee adopted an amendment to the legislative proposal on the bank levy that removed passages that would have capped the levy in 2017 and 2018 at 45% of the payments made in 2015.

Ágnes Hornung, a state secretary at the Economy Ministry, said they could not adopt legislation using financial figures for a financial year that was still in progress.

The incentive of further reducing the levy for banks that increase their corporate lending and their lending to SMEs in 2016 through transactions and outlays was also removed from the proposal.

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.