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BKIK President concerned over capitalʼs planned 0.5% crisis tax

The President of the Budapest Chamber of Commerce and Industry (BKIK) Elek Nagy spoke to Világgazdaság about the serious long-term effects of the capitalʼs 0.5% crisis tax planned to be levied on tax-based enterprises over HUF 5 billion.

According to him, the main problem is that the crisis tax would apply indiscriminately to all companies with a larger tax base, but without a true parliamentary decision, one could hardly be introduced, as the Business Tax Act sets a maximum of 2%.

Nagy warned that if the Budapest city administration went in the outlined direction and found the legal basis for the move, many larger companies could close down in Budapest and some companies operating in Budapest due to tax optimization, such as labor-intensive call centers, could go to the countryside, or they could even deploy their entire business abroad.