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Szijjártó says global minimum corporate tax is 'unacceptable'

World

Péter Szijjártó

Image by irena iris szewczyk / Shutterstock.com

Minister of Foreign Affairs and Trade Péter Szijjártó said the government will not accept a global minimum corporate tax, as it would lead to tax increases in Hungary, speaking to MTI after meeting with Mathias Cormann, who was recently appointed to become the OECD's next secretary-general, in Paris on Tuesday.

The OECD is hashing out a scheme for a global minimum corporate tax that would put Hungary, with a corporate tax rate of 9%, the lowest in the European Union, at a disadvantage.

Szijjártó said the past decade has proven that tax rises are "a dead end", while tax cuts present "the best incentive" for workplace creation and economic growth.

"Hungary will insist that setting tax rates remain in the scope of national power," he said. "Nobody has any right to intervene from the outside in Hungarian tax policy," he added.

Szijjártó said Hungary shares the position that a solution to the issue of taxing big technology companies must be found, adding that the tax must be paid in the location where value is created.

"Let's not allow big tech companies to enjoy an unfair competitive advantage because of the lack of international tax regulation," he added.

He acknowledged the OECD would play a "big role" in resolving the issue.

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