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On Tuesday night, a decree was published in the Hungarian Gazette, according to which the government prohibits local governments from raising taxes in 2021, imposing a new tax, and furthermore they must maintain the tax benefits introduced in 2020 next year.
(1) In the fiscal year ending in 2021, the rate of the local tax and the local tax may not be higher than the rate of the same local tax and the local tax established in the current local government tax decree and applicable to the date entry into force of this Decree.
(2) The local government will also provide tax exemptions and allowances in accordance with its tax decree in effect on the effective date of this Decree in the fiscal year ending in 2021.
(3) The local government does not have the right to introduce a new local tax, a new local tax for 2021
– 535/2020 rings. (XII. 1.), which can mean another significant loss of resources for local governments.
The decree will expire on February 8, 2021, so the government is expected to regulate the issue at a later date.
The cabinet decided to ban the tax increase, citing protection against the second wave of the coronavirus epidemic, but the opposition believes that the government of Viktor Orbán will use the pandemic only as an excuse for local governments. defend and financially impossible.
On the possibility of freezing local taxes more recently László Parragh, The president of the Hungarian Chamber of Commerce and Industry spoke in an interview with the Index a week and a half ago, also saying that local governments should be obliged to waive the business tax for a year. The president of the Chamber of Industry argues in support of his proposals that small businesses should be helped during the coronavirus epidemic, and another question is how the Orbán government generates the necessary resources for local governments to function.
Previously, the car tax was also removed from municipalities, and the solidarity tax on them almost quadrupled.
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