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Constitutional Court upholds amendment expanding personal income tax base

Hungary's Constitutional Court on Tuesday ruled that an amendment to Hungary's tax law that will include employers' payroll taxes, in addition to gross wages, in the base for the personal income tax is constitutional.

The court said the amendment simply expanded the tax base with a correcting factor, rejecting an appeal by an ombudsman who argued the tax would be levied on more than just earned income after the change.

The amendment was approved by Parliament in the summer and will come into force at the start of 2010.

The Czech Republic's Constitutional Court earlier upheld a similar tax measure. (MTI-Econews)