Govt nixes idea of raising local business tax

The government does not support an increase in businesses’ local tax burden, János Lázár, head of the parliamentary group of governing Fidesz, said at a press conference after a meeting of MPs and the government on Monday.

Answering a question about local councils’ freedom to levy taxes, Lázár said Prime Minister Viktor Orbán had said at the meeting that the government could not support any increase in the local tax burden for businesses because it would hurt the country’s competitiveness. He added that the cabinet was open to reviewing the possibility of a restructuring of local taxes for private individuals, he added.

The parliamentary group will draft a proposal on the matter by Wednesday, considering in the process taxes such as one on farm land, he said.

Lázár said Orbán had said the budget debate had to be continued in a continuously changing economic environment. The prime minister said Hungary’s path of economic growth was determined in no small part by the economic outlooks for Germany and France, he added.

Orbán told the MPs they had little room for maneuver with regard to modifications to the tax laws and budget, reiterating the government’s commitment to reducing the general government deficit as well as state debt.