Hungarian Parties In Battle Of The Tax-Cuts

by Ulrika Lomas, Tax-News.com

02 October 2001

In the battle over tax cuts taking place in the Hungarian Parliament, and which can be seen as a part of campaigning for the upcoming election, the largest opposition party, the Hungarian Socialist Party (HSP), has submitted its own bill to compete with the proposals introduced by Finance Minister Mihaly Varga last week and described in yesterday's Tax-News.

HSP presidium member Sandor Burany told journalists that according to the HSP's proposals, the highest income tax rate would be 25% for almost 90% of tax-payers. The bill also proposes the gradual abolition of TV licence fees and lump-sum health insurance contributions, along with a rise in tax allowances. Burany said that implementation of the package would cost about 150bn forints ($80m).

The government's proposals include tax free pensions, incentives to be given to families building their own houses, and support for family farms. In the current hot-house atmosphere of Hungarian politics it is quite unclear whether any of the competing proposals will become law, or whether we are just witnessing a sham battle intended to influence the electorate.

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