“Hungary is wise to reject the global minimum tax proposal which would significantly harm valuable tax competition between countries and cause undue harm to businesses, workers and economies around the world,” the advocacy group said. Americans for Tax Reform. The organisation’s president, Grover Norquist, praised the Hungarian government for opposing the minimum corporate tax agreement proposed by the Organization for Economic Co-operation and Development (OECD) and backed by more from 100 countries.
“Cartels that keep prices high hurt consumers,” Norquist said. “Creating a fiscal OPEC of governments to avoid tax competition is bad for citizens and taxpayers. Competition drives selfish rent seekers out of business and government.
Hungary joins global minimum corporate tax agreement
“We achieved serious results, we can easily call it a Hungarian success – we were right to defend our interests,” Finance Minister Varga said.Continue Reading
In May, the European Parliament issued a statement supporting the December 2021 agreement between the OECD and G20 member states which aims to “address the tax challenges raised by the digitalisation of the economy”. The agreement involves “a unified approach to taxing rights regarding the largest and most profitable multinationals” and the introduction of a minimum corporate tax rate of 15% “to mitigate transfer practices of profits to zero or very low tax jurisdictions.”
The European Commission published a proposal on how the EU could turn the reform into law by 2023, and a report presented by the Economic and Monetary Affairs Committee said the directive would apply to companies with a turnover turnover of at least 750 million euros per year. The bill would require the unanimous support of all 27 member states.
On Wednesday, Hungary emerged as a late opponent of the proposed tax, according to an EU diplomat. A Europe-wide deal was expected on Friday after Poland dropped its opposition, but the deal now looks unlikely.
Foreign Secretary sees hope for compromise on global minimum tax
The global minimum tax was discussed between Szijjártó and Antony Blinken, the US Secretary of State.Continue Reading
In a video posted on his Facebook page, Foreign Affairs and Trade Minister Péter Szijjártó said the global minimum corporate tax would have an “exceptionally severe impact on the European economy”, due to current challenges. of Europe, including inflation, high energy costs and an ongoing war. He said the tax would be a significant barrier to economic success, especially if Europe were the first to implement it. Hungary’s economic success, he added, stems from the government’s ability to cut taxes.
Featured photo illustration via Péter Szijjártó’s Facebook page