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Constitutional Court annuls 98% tax on severance pay

Hungary's Constitutional Court ruled that a 98% tax levied on severance pay over HUF 2 million was unconstitutional and annulled it.

The tax was introduced retroactively from January 1, 2010 in legislation approved in the summer by Hungary's new government. The court's ruling affects all tax payments made from the start of the year.

Fidesz parliamentary group leader Janos Lazar said at a press conference after the decision was announced that he had initiated an amendment to the constitution that would exclude questions that can not be put to a referendum - such as questions on taxes - from the Constitutional Court's scope. (MTI – Econews)