Prime Minister Gordon Bajnai on Wednesday said he was prepared to negotiate further with the Free Democrats (SZDSZ) on the planned introduction of a luxury tax, a day after SZDSZ chairman Gabor Fodor said the party had serious worries about the tax and found one part unacceptable.
Mr Bajnai said the luxury tax was necessary for Hungary as the resulting HUF 40bn-50bn in revenue would allow a reduction in personal income tax, but added he would be happy to hold talks on technical or other details.
The proposal for the tax is expected to be submitted to Parliament in June, Mr Bajnai said.
Mr Bajnai’s minority government needs the support of SZDSZ if the tax, part of a broader tax package, is to be approved.
The government’s proposal would levy a 0.35pc tax on property and vehicles over HUF 30m and a 0.5pc tax on such assets worth more than HUF 50m.