Hungary’s National Association of Trade Unions (MSZOSZ) said on Wednesday it would initiate talks with the prime minister on several aspects of his tax plans.
Head of MSZOSZ Peter Pataky said trade unions did not support the idea of scrapping a 4 percent extra tax on annual incomes of 7 million forints and above.
It also objects to plans to cut payroll taxes paid by employers rather than workers’ contributions.
Further, the union rejects the proposal to make bonuses such as meal tickets or travel contributions subject to tax.
Raising value-added tax on all items, including food, affects the poorest, he said, outlining the association’s final objection.
Prime Minister Ferenc Gyurcsany has proposed raising the lower personal income tax bracket from 18 to 19 percent while widening its base, and raising the upper tax bracket from 36 to 38 percent. He said VAT would be raised from 20 to 23 percent, to offset a 5 percentage-point cut in payroll taxes to 27 percent.
Pataky said he would bring up these issues at a meeting with Gyurcsany on Friday.