SzDSz chairman János Kóka announced that the liberal caucus decided to withdraw their tax-cut proposal due to the lack of support from the coalition partner, senior governing MSzP.
Earlier the free democrats came up with the proposition to raise the limit of the 18% tax bracket from an annual income of Ft 1.7 million to Ft 1.9 million. In view of their failure to reconcile with the socialists, SzDsz will not back the Fidesz proposition in the same issue.
Kóka emphasized that their proposition will be discussed again in the future and SzDsz will not abandon their plan for an overall tax reform. The main opposition party motioned to raise the limit of the tax-bracket to Ft 1.8 million. Fidesz caucus leader Tibor Navracsics asked the coalition parties to vote for their motion as “we are in a social crisis and tax reduction can be the only solution”.
Reflecting on the liberal’s withdrawal, Navracsics added that SzDSz wanted to bid higher than Fidesz only to back down later, promising MSzP not to vote for an opposition motion that would relieve people of some financial burdens. According to the Fidesz politician, the events of the weekend highlighted the fact that “those who are keen on bringing up tax-cuts do not for a minute consider realizing their claims when it is time to act”. The parliament accepted a motion of MSzP MPs that opposes the government’s efforts to combine 3 small taxes. (Gazdasági Rádió, Magyar Hírlap)