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Parliament approves more than a hundred amendments to tax law

Parliament approved on Tuesday 138 amendments to the tax law, making next year's tax changes practically final. Among the changes were ones affecting the excise tax on vehicle fuel and the tax on company cars.

The tax measures approved were supported by SzDSz, the former coalition partner of the socialists MSzP, now governing in minority, and with some votes from the other minor opposition party MDF, and from two independent MPs.

Under the changes, the excise tax on petrol will rise to HUF 108,700 from HUF 108,300 per thousand liters and the excise tax on diesel will be raised to HUF 89,300 from HUF 88,900 per thousand liters. A preferential tax, of HUF 103,500 and HUF 85,000, respectively, will apply on bioethanol content of at least 4.8%. The limit is raised from 4.4% at present.

The tax on corporate cars will be transformed into an asset-based tax: companies will have to pay HUF 7,000 a year on cars with engines smaller than 1.6 liters and an annual HUF 15,000 on cars with bigger engines.

One amendment approved lays out a definition of “sound labor relations” required for smaller companies to avail of a special 10% corporate tax rate.

Another amendment limits companies' stock of cash to 1.2% of the previous year's annual revenue. (MTI – Econews)