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Regardless of the sector, the Hungarian Chamber of Commerce and Industry would exempt the entire sector of micro, small and medium-sized enterprises from business tax. László Parragh’s proposal is for this year and next, he told the Hungarian Nation. In addition, he wants the government to freeze other municipal taxes so that municipalities do not use them to compensate for the loss of income.
On November 8, Parragh proposed to Viktor Orbán for the first time the suspension of the corporate tax (now a total exemption) and the halving of the corporate tax. The prime minister said on state radio that “it is steep, but you can climb, you just have to find the right proportion.”
According to Mayor Gergely Karácsony, Parragh’s plan would stop public transport in Budapest in one day.
The capital would collect a restart tax from companies above the HUF 5,000 million tax base, which are less affected by the crisis, but are beneficiaries of the tax changes in recent months. The idea is that instead of the current 2 percent, they would have to pay a 2.5 percent business tax.
Parragh said this would be unacceptable, but 20 unions supported the proposal.
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