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Banks to pay HUF 120 bln of extraordinary tax

Commercial banks will pay HUF 120 billion of an expected HUF 187 billion to be generated by an extraordinary tax on financial sector companies, public radio MR1 reported, without naming any sources.

Prime Minister Viktor Orbán announced the tax as part of the government's action plan early in June, and banks are in talks with government representatives on its implementation. A final agreement on the tax is expected to be reached by the end of June.

Insurance companies will pay HUF 36 billion of the tax and savings cooperatives HUF 6.1 billion, although the Prime Minister's spokesman said earlier savings cooperatives would not have to pay the tax, MR1 said. Leasing and factoring companies will pay HUF 12.5 billion, in spite of making losses in 2009, financial intermediaries will pay HUF 3.2 billion, fund managers HUF 2.2 billion and investment service providers HUF 1.1 billion. The state-owned Hungarian development bank MFB will pay HUF 5 billion and the Budapest Stock Exchange HUF 200 million.

The tax is to be paid by September 30, but the tax is to be in place for just two years, instead of the earlier announced three, the radio broadcaster said.

Banks are already to pay HUF 13 billion in “banking royalty” into the central budget this year. (MTI – Econews)