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Fund managers uncertain if they are subject to extraordinary tax

Hungary's fund managers have not yet received official notification regarding whether or not they would be required to pay the government's proposed extraordinary financial-sector tax, Association of Hungarian Investment Fund and Asset Management Companies (Bamosz) General Secretary András Temmel told MTI on Wednesday.

Prime Minister Viktor Orbán told parliament on June 8 that the Fidesz-led government would impose an extraordinary three-year tax on banks, insurance companies and other financial companies such as leasing companies that would raise the amount of budget revenue from such institutions by HUF 187 billion (€610.34 million) to HUF 200 billion this year alone. The extraordinary tax will be payable in addition to the profit tax. To date an extraordinary tax, the so-called bank royalty, applied only to banks, and has been payable on interest revenue related to state-subsidized loan stock. This year's budget earmarked HUF 13 billion revenue from this tax.

Hungarian Bank Association President Tamás Erdei earlier told MTI that the association would accept an extraordinary tax only if it applied to the entire financial sector.

Temmel remarked that fund managers generate only small revenue compared to banks and insurance companies. He warned that managers can move their funds abroad very quickly, noting that 70% of the assets are managed in Hungary by companies owned by foreign financial groups. (MTI-ECONEWS)