Hungarian insurers to pay no bank levy from 2013, ministry confirms


Hungarian insurers will no longer pay the extraordinary levy on financial sector companies from next year, the National Economy Ministry said on Tuesday, confirming a measure outlined in the recently unveiled Széll Kálmán Plan 2.0, an updated structural reform program.
"From December 31, 2012 insurers' obligation to pay the extraordinary tax will be eliminated," the ministry said. Under the Széll Kálmán Plan 2.0, a unified tax on insurance products is to replace the bank levy, the accident tax and the fire prevention tax that Hungarian insurers pay at present.
The unified tax will vary according to product type: the rate for accident and asset insurances will be 10%, the rate for comprehensive vehicle insurance will be 15% and the rate for mandatory vehicle insurance will be 30%. Life insurance products will be exempt from the tax. The government aims to achieve a fiscal improvement of HUF 15 billion in 2013 from the measures.
The ministry also reiterated the government's plan to gradually phase out the bank levy across the entire financial sector, at least halving the tax from 2013.
The ministry said it was discussing with the Hungarian Banking Association "ways to create a tax structure better tailored to economic policy goals and in which financial institutions take an appropriate share in public burdens".
The government agreed with banks late last year to halve the bank levy from 2013. The ministry also confirmed on Tuesday that it aimed to eliminate "crisis taxes" levied on the retail, telecommunications and energy sectors for three years from 2010.


Sharp Rise in Energy Costs Putting Strain on Competitiveness Analysis

Sharp Rise in Energy Costs Putting Strain on Competitiveness

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Danubius Hotels Appoints Group Director of Development Appointments

Danubius Hotels Appoints Group Director of Development

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim... City

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.