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Gov't bill to impose broader capital gains tax

A raft of proposals submitted to Parliament by the governing Socialist-Liberal coalition late on Tuesday contains a bill which would impose a 20% capital gains tax on all financial investments from September 1, business daily Napi Gazdaság said on Thursday. The new tax would be higher and affect more people than the capital gains tax planned in the government's five-year tax reform package announced a year ago. In the package, the capital gains tax would not have been introduced until 2007, and then at a rate of just 10%. The tax was also to have been levied only on capital gains over an annual Ft 50,000, if total investment earnings did not exceed Ft 250,000. The new bill, however, contains no such exceptions. Private individuals will be required to pay the tax on the basis of certificates from their brokers when submitting their personal income tax returns. The tax on interest will be deducted before the interest is paid. Losses on financial investments may be deferred for two years.(Econews)