Govt to deduct from 98% supertax reimbursement


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.


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