Govt to deduct from 98% supertax reimbursement

Issues

The government has decided that the personal income tax and the healthcare contribution will be deducted from refunds on the 98% supertax on severance payments, which the government must give to taxpayers under Constitutional Court and European Court rulings, the government spokesperson said on Wednesday.

A proposed "Supertax" on government employees who were fired, which would have meant all earnings above HUF 2 million could be taxed at a rate of 98%, was ruled inapplicable by Hungary's top court and the court in Strasbourg.

Therefore, the government must refund the taxes charged to these individuals since the law's passage in 2010.

Éva Kurucz, government spokesperson, said Wednesday tat returning those amounts untaxed would be "unjustified positive discrimination" for people who had received "unfair benefits" under the previous governments, she said. The government decided, therefore, that the amounts to be reimbursed should be reduced by the amount of personal income tax and healthcare contribution effective at the time the payments had been made, she explained.

The deductions from the "disproportionately high and unjustified" payments will "enforce the aspects of justice", she added.

ADVERTISEMENT

Climate change hurts economy, but creates new business oppor... Analysis

Climate change hurts economy, but creates new business oppor...

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Dentons rehires banking and finance partner Appointments

Dentons rehires banking and finance partner

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.