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The Hungarian government will not introduce a real estate tax in January 2008, but talks between the governing coalition parties about lowering the threshold for luxury tax continue, business daily Világgazdaság reported on Friday.
While the decision not to implement the new tax next year refers only to 2008, many believe that the government has ditched the idea altogether and will not burden the population with the real estate tax at all during its term, which runs through 2010). The cabinet is expected to decide on tax system changes to be implemented in 2009 in the spring of 2008 and is likely to tackle major tax cuts as well. (Vg, portfolio)