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Hungary to ignore European Court's ruling on VAT

Hungary is sticking to its 2011 and 2012 budget deficit targets and a European Court ruling on value added tax (VAT) refunds has no impact on the budget goals, spokespeople of Ministry for National Economy annoumced in a statement, reported Reuters.

The Luxembourg-based court said in a ruling dated July 28 that Hungary's regulations on certain VAT refunds were not in line with European Union laws.

The ministry also said it would consider selling a part of oil and gas group MOL to raise revenue.

"The government, should it become necessary next year, will consider the possibility of selling part of the MOL share package among others in order to boost budget revenues," the ministry added.

The government bought back a 21.2% stake in MOL earlier this year by paying €1.88 billion euros to Russian oil and gas group Surgutneftegas.