One of the most favorable forms of Hungarian tax to abolish?

The Democratic Coalition (DK) will launch a petition to protest the government’s plans to scrap the Detailed Preferential Tax for Small Businesses (KATA), the spokeswoman for the opposition party’s parliamentary group said on Sunday.

Both the finance minister and the president of the Hungarian Chamber of Commerce and Industry recently admitted that the government is considering scrapping the KATA tax, Olga Kálmán told an online press conference.

KATA taxpayers who earn up to 12 million forints (EUR 30,530) per year pay a monthly lump sum of 50,000 forints instead of corporate or payroll tax.

“Removing this favorable form of taxation would lead to a significant increase in taxes and austerity destroying many thousands of small businesses,” Kálmán said, adding that raising taxes “obviously would be one of the elements of the tax plan. Fidesz austerity that the Orban government began to announce this week”.

She said DK firmly rejects Fidesz austerities, including tax increases, and will not allow Hungarian small businesses

“to pay the price for his misguided economic policies.”

Read also Here are the details on the newly introduced windfall taxes!

Source: MTI

Laura T. Thrasher