The government is withdrawing proposals for next year’s tax law and budget, House Speaker Katalin Szili said after an extraordinary meeting of the House Committee on Monday.
The government will submit the budget in a new form on Friday, Ms Szili said.
Parliamentary groups agreed to start debate of the budget ceiling law, in a departure from house rules, Ms Szili said. The general debate will start on Monday, and details will be discussed next week. The closing vote will take place on October 27.
The parliamentary groups also agreed to debate an amendment of the law governing the National Deposit Insurance Fund (OBA). The amendment will raise the cap on deposit insurance to HUF 13m from HUF 6m.
Beside Iceland, analysts believe Hungary is one of the countries at greatest risk because of the global financial crisis, said SZDSZ parliamentary group leader Janos Koka. For this reason, it is important that Parliament start debate of the budget ceiling proposal on Monday. Changes to the proposed legislation may be made until Friday noon, he added.
The government still stands by its plan to introduce a Robin Hood tax on energy companies, Mr Koka said. SZDSZ believes it is unacceptable that the government withdraw its tax cuts, but keep its one big tax increase — an increase that is likely to be born by consumers, he said.