Government introduces tax bills

Banking

The Ministry of National Economy introduced three tax bills to parliament on Friday, concerning a telecommunications tax, a financial transaction tax, and an insurance tax.

If voted in parliament, telecommunications companies should pay a HUF 2 tax per minutes of voice calls and text messages from July 1. Ten minutes of voice calls per month will be exempt, and the total tax will be capped at HUF 700 per month on private individuals' calls and messages and at HUF 2,500 for other callers, according to the bill introduced on Friday.

The financial transaction tax will be levied at a rate of 0.1% on transfers between accounts -- except between one's own accounts at the same bank --, cash withdrawals, cash transfers and cheque redemptions from January 1st next year. The tax will be assessed and paid by the financial service providers in monthly instalments. The tax will not apply to the National Bank of Hungary, state treasury transactions and interbank payments, according to the bill.

The insurance tax will be 30% on mandatory vehicle insurance premiums, 15% on CASCO-type vehicle insurance premiums, and 10% on property and accident policies from January 1st next year, according to the bill introduced on Friday. Health and life assurance policies will be exempt from the tax. At the same time, insurance companies will pay no more special tax of financial institutions, accident tax and fire security contribution, the Ministry said.

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