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President signs gov't action plan into law

President Pál Schmitt on Wednesday said he had signed all legislation submitted to him by Parliament. Among the legislation was a package related to the government's 29-point action plan.

Parliament approved the legislation on July 22, the last day of its extraordinary summer session, but Deputy House Speaker Sándor Lezsák delayed submitting the package to the president until Schmitt's inauguration on August 6.

Local papers speculated the move was meant to avoid the possibility of then President László Sólyom either returning some of the legislation to Parliament for reconsideration or referring it the Constitutional Court. Schmitt is seen as far friendlier with the current government than Sólyom.

The legislation will introduce a bank levy that is to raise HUF 187 billion in revenue alone in 2010. It will raise the profit threshold for companies that may avail of a 10% preferential corporate tax rate from an annual HUF 50 million to HUF 500 million with retroactive effect from July 1, and it will introduce a HUF 2 million-per-month pay cap on all public sector workers. (MTI-Econews)