ADVERTISEMENT

EU finds fault with Hungary's registration tax

Issues

Hungary levies a registration tax on used imports, while second-hand vehicles purchased in the country are exempt. Buyers in two cases said the legislation, introduced when Hungary joined the EU in May 2004, is discriminatory. „The duty imposes a heavier burden on imported used vehicles than on similar used vehicles already registered in Hungary,” the Luxembourg-based European Court of Justice said in a statement today. Hungary has collected about €116 million from 80,000 used cars that have been imported since 2004. Today's ruling could force the government to pay back as much as Ft 8 billion, Hungarian Finance Minister János Veres estimated. „We will take the necessary steps, we will change our laws if needed,” Veres said in a press conference in Budapest today. „Our intention is to make this as simple as possible and to only pay those who didn't pass on the costs.” The ruling won't affect Hungary's budget deficit this year as the sum is well within the government's reserves, Veres said. The European Court of Justice has ruled on similar cases involving countries such as Portugal, Greece, Finland and Denmark. (Bloomberg)

ADVERTISEMENT

Regional income disparities remain pronounced Analysis

Regional income disparities remain pronounced

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.