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Fidesz parliamentary group to take position on simplified business tax on Monday

Banking

The parliamentary group of governing Fidesz will take a position on the future of the Simplified Business Tax on Monday, the group’s press department said on Friday.

The group will take positions on all amendments submitted to the government’s tax bill on Monday, including a proposal to eliminate the Simplified Business Tax, also known by its Hungarian acronym "eva".

The parliamentary group will submit its positions to the government, which is expected to compile the changes it supports on November 10.

Government spokesman Andras Giró-Szász said at a press conference on Thursday that the government supported a proposal by National Economy Minister György Matolcsy to eliminate eva from the start of next year. However, Parliament’s Audit and Budget Committee on Wednesday rejected a bill by Fidesz MP László Koszorús to scrap the tax.

The tax generated revenue of HUF 86.5bn in January-September, the latest general government data from the National Economy Ministry show. It is expected to bring in HUF 180.1bn for the full year, according to a downward revised target approved by Parliament, practically level with the HUF 181.9bn eva generated in 2010.

Eva is expected to bring in revenue of HUF 179.1bn in 2012, HUF 187.7bn in 2013, HUF 197.8bn in 2014 and HUF 208.2bn in 2015, according to the 2012 budget bill.

Giró-Szász told public television on Thursday that scrapping eva would raise budget revenue by HUF 50bn according to the economy ministry’s calculations.

Answering a question at a press conference on Thursday, Matolcsy said eva would lose its raison d’etre in 2013, when the full switch to the 16% flat-rate personal income tax system is introduced. No additional income tax systems can or need to be maintained, he added.

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