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Banks seek broad changes to transaction duty bill, says association leader

The Hungarian Banking Association is proposing broad-reaching changes to the government's bill introducing a duty on financial transactions, Dániel Gyuris, deputy chairman of the board of the association, said in an interview on public television on Wednesday.

Hungarian banks now pay an extraordinary financial sector tax that is 17 times higher than the European average, and if the financial transactions duty is introduced in its present form, this factor will rise to 50, Gyuris, deputy-CEO of OTP Bank, said on Ma reggel, a morning news and talk program on public television m1. He said the association was proposing that banks share the burden with clients.

Gyuris said he trusts a duty can be introduced, after talks, that clearly shows these burdens. A better thought out proposal, one that modifies almost all points of the current bill could be the solution, he added.

If the bill is approved by Parliament in its current form, it will cause a further recession, he warned.

Lending capacity of banks will deteriorate and companies who think on a European scale could move their financial transactions abroad in just a month, he added.