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Sides fail to reach agreement on extra-wage tax rate at OÉT talks

Finance Minister Péter Oszkó offered to introduce a preferential 25% tax rate on extra-wage payments, such as hot meal and travel vouchers at a meeting of the national interest conciliation council (OÉT), but the rate was still too high for unions and employers.

The Finance Minister originally planned the tax at 32%. The Finance Minister originally planned the tax at 32%.

Unions said they calculated a 17% tax rate on extra-wage benefits would generate more budget revenue. Employers, who originally proposed a 10% rate on the benefits, said on Friday that the 17% rate would be acceptable.

Oszkó said the 25% rate would apply to up to the monthly minimum wage for public transportation passes and vacation vouchers, up to a monthly HUF 18,000 for hot meal vouchers and up to half of the monthly minimum wage for voluntary pension fund contributions. (MTI – Econews)