November 11th, 2008

Parliament passes Ft 30 billion “Robin Hood” tax on energy firms

Parliament yesterday passed the so-called Robin Hood bill, imposing an 8% tax on energy providers and traders for two years. The expected Ft 30 billion each year will be used to make block heating more cost-efficient.

In what the Socialist Party described as a dress rehearsal for the budget bill, 190 MPs voted in favour of the tax and 184 voted against. There were no abstentions, though 12 MPs were absent. All 188 Socialist MPs present supported the bill, as did former Fidesz and now Democratic Forum MP Zoltán Lengyel, and independent MP István Gyenesei, the Local Governments Minister.

All opposition parties, including the Free Democrats, voted against the bill, but several Fidesz MPs, two Forum MPs, one Free Democrat and independent János Vas were absent.

MOL said the tax places Hungarian companies at a disadvantage in relation to foreign companies.

Parliament also passed a bill approving the implementation of last year’s budget with 207 affirmative votes, 171 dissensions and no abstentions.

On other matters, the House approved legislation paving the way for civil action against hate speech. The legislation would allow those who are humiliated or intimidated because they are part of a group defined by ethnic affiliation, religious conviction or sexual orientation to take civil action against their persecutors. The bill passed by a vote of 214-162.

The criminal code and the law on misdemeanours were also amended to make it a punishable offence to hinder the freedom of others to assemble, to impede the organisers of rallies, to stage rallies without informing the authorities, to make preparations to use force against the authorities, to disturb trials at courts, or to damage railway tracks, train carriages or cables.

Parliament accepted a Fidesz proposal to establish a council to oversee the implementation of the budget. Its three members will be designated by the President of Hungary, the head of the State Audit Office and the governor of the National Bank. A budget office as preferred by the Socialists will not be set up.

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