Are you sure?

Gov’t keeps bank tax after riled by lenders' protests

Hungary center-right Fidesz government has extended the bank levy out of anger after banks went to international forums to protest against the tax, Figyelőnet reported.

As part of its fiscal package unveiled on Tuesday, the government said it would keep the same financial sector tax in place until 2012.

Initially it said the tax would halve in 2012. According to Figyelőnet, Hungary's banking association MBSz has sought with the government to have the temporary bank tax count toward gains taxes in subsequent years, but National Minister György Matolcsy said that banks have only two options: either they pay HUF 120 billion in 2010-2011 and HUF 90 billion in 2012, or, if they continue to lobby against the tax in Brussels, be ready to pay HUF 150 billion for three full years.

The business news portal said Matolcsy lost his calm after 13 international companies sent a letter to Brussels to protest against the Hungarian tax.