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Hungarian Finance Ministry says no details yet on property tax

The statement followed a story in Magyar Nemzet newspaper earlier yesterday that said owners of property worth Ft 15 million ($69,573) would pay Ft 30,000 a year in property tax, which could rise by 1.5% on higher-valued real estate. The government is planning the tax to help cut its budget deficit, set to reach 10.1% of GDP this year. The government wants to cut the shortfall by 67% over the next three years to make Hungary eligible to join the euro. The Finance Ministry said it wants people with money to „contribute to the public burden based upon their declared income” and based „on their true financial situation.” The property tax already exists in Hungary, but yet it is collected as a municipal tax. Since property tax revenues take only 1% of the yearly tax income, government plans to reconsider its importance and adjust its rate to other European countries, where property tax makes 2-6% of the yearly tax revenue of the country. (Bloomberg, pm.gov.hu)