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Hungary: Employers and employees reject government tax package

  Both employers and employees rejected the government’s tax package at a meeting of the National Interest Coordination Council (OET) on Friday. The government submitted to Parliament the package last week.

LIGA unions Vice President Lajos Horváth said the package is disappointing because it transfers income from employees to employers and from workers with low income to workers with high income.

Employee representative Gábor Horváth noted that there is not a single element in the package that was previously proposed by employees.

Finance Ministry State Secretary László Keller emphasized that the government has only limited room for maneuver. Keller said the package was prepared keeping in mind that the government deficit should be kept below 3pc.

Union leaders announced that four major unions will hold a demonstration on April 4 if the government refuses to acknowledge their concerns regarding the proposed tax changes.

The four unions participating in the demonstration would be the association of autonomous unions, the National Alliance of Hungarian Trade Unions (MSzOSz), the association of public sector unions SzEF and a union of intellectual workers.

MSzOSz Deputy Chief Andrea Hernádvölgyi said the demonstration would take place in front of the Parliament building, adding that she would expect 10-15,000 people to attend.