Banking association contests constitutionality of tax changes

Banking

The Hungarian Banking Association has asked the president to submit tax amendments approved by Parliament on Monday to the Constitutional Court to determine whether they are constitutional, the association's Secretary General Rezső Nyers said in Wednesday's issue of business daily Napi Gazdaság.

The association has protested the introduction of a tax on state interest subsidies, to be paid quarterly, and complains that it must pay the so-called “solidarity tax”, to be introduced from September 1, on top of the extraordinary banking tax, which expires at the end of 2006. The association also notes that the increase of the capital gains tax from 0% to 20% from September 1 gives banks far too little time to make the necessary technical changes. Banks need at least three months to prepare, Nyers said. He added that the Constitutional Court's consideration of the tax changes could delay them from coming into force, buying more time for banks to change their IT systems.

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