Hungary’s parliamentary commissioner for civil rights Mate Szabo is contesting a wealth tax to be introduced in 2010 before the Constitutional Court, the Parliamentary Commissioner’s Office told MTI on Tuesday.
The legislation, signed by the President early in July, will introduce a bracketed tax on wealth from the start of 2010.
“The law ensures the tax office a practically unlimited appraisal right, thus any uncertainty in deciding the tax base is a serious offense against the demands of legal certainty,” Szabo said. The tax discriminates against large families, too, he added. Furthermore, the exemption is solely based on the value of the property and does not take into account the number of its owners.
In a statement sent to MTI on Tuesday, the Finance Ministry insisted that the wealth tax was in accordance with the constitution and was based on the consensus of a wide circle of experts.
The rate of the tax will be 0.25 percent up to 30 million forints, 0.35 percent 30-50 million, and 0.5 percent on above 50 million forints. If the owner lives in the home, the value up to 30 million forints will be exempt from the tax. There will be a 15 million exemption on the value of a second property.