The government expects its new tax on high-value assets to pass muster with the Constitutional Court as the tax was created taking the court’s earlier decisions into mind, government spokesman Domokos Szollar said on Friday.
The tax is expected to affect just 5pc of taxpayers, Mr Szollar said.
The court is expected to take a decision on the tax in February.
The government introduced the tax from the start of 2010 as part of measures to narrow the budget gap.
More than half a million Hungarians have downloaded an asset tax calculator from the website of tax office APEH.
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so a tax that affects only 1/20th of the population is constitutional; and a tax on something that if the person doesn’t have the money, is forced to sell…
Tax, Tax, and more Tax. AFA at 25% and prices rising on just about everything including gas, electricity, petrol, foodstuffs etc etc.
Hungary is fast approaching meltdown.
“Send not to know for whom the bell tolls…”
We hear it, we see it, and now we feel it!
Lets face it, the luxury tax will do only a couple of things,
1. Depress the housing market
2. Encourage black market prices, i.e. the book value is less than 30M HUF the exchanged value includes a little unaccounted for cash.
The sooner this government wake up to the fact that adding more taxes and increasing the current ones just expands the black market and only marginally increases the tax revenue, the better.
But there might be a cold day in hell first.