Hungary rejects all initiatives that would lead to tax increases and deteriorating competitiveness, therefore it did not support the introduction of a global minimum tax at the meeting of the Organization for Economic Co-operation and Development (OECD), Mihály Varga said in Záhony in response to journalists’ questions, the Ministry of Finance told MTI.
The Finance minister was quoted as saying that
the Hungarian position has been clear since the beginning, we are committed to fair tax competition and the taxation of the digital economy, but the tax increase should not penalize companies engaged in real economic activity, because it could put jobs and investment projects at risk.
The crisis management measures of the Hungarian government are based on the protection of jobs, stimulating investment, and tax cuts, and we oppose tax increases of any kind, Mihály Varga stated.
He explained that
a global minimum tax would hinder economic growth; the proposed 15% tax rate is too high and it should not be levied on real economic activity.
The statement quoted Mihály Varga as saying: Hungary has made several proposals to improve the regulations, but these have so far been ignored.
Now our goal is to have a fair set of rules worked out for the OECD meeting in October, rules that take into account the interests of all states, regardless of their size and level of development.
Hungary will continue to work constructively with OECD member states so that an appropriate agreement can be reached.
In the recently launched national consultation survey, people will be asked about the tax increase plans by Brussels and the protection of low taxes on labour, the statement wrote.