The Constitutional Court on Tuesday struck down provisions of the wealth tax bill pertaining to a planned property tax.
The Court found unanimously that the requirement for homeowners to establish the value of their property for tax purposes creates legal uncertainty.
Those aspects of the bill relating to a tax on expensive boats, aircraft and luxury cars were allowed to stand.
The bill, passed last June, would have introduced a tax on homes worth over Ft 30 million, as well as second homes worth at least Ft 15 million.
The 2010 budget includes Ft 50 billion in revenue from the proposed tax, equivalent to an estimated 0.2% of GDP.
The cabinet is examining how and how long it will take to address the objections raised by the Court and how to offset the shortfall of revenue, the government spokesman’s office said. It welcomed the Court’s acknowledgement that a property tax can exist in Hungary, as in many other European countries.
Socialist spokesman István Nyakó said the party will have to study the Court’s reasoning before making a statement.
Fidesz spokesman Péter Szíjjártó said the ruling clearly shows that the Hungarian people have won and the cabinet has fallen.
Finally someone came to a sensible conclusion. A word of advice to policy makers: Next time, think.
How sensible? They failed to twig that 1/20 people pay the tax – or that the tax isn’t on a transaction, but on the value of something so if there’s no money – you have to sell the asset.
Its just a complete load of bollox anyway.
They will start taxing visits to cemeteries and street lighting and perhaps,
windows, and flying kites, as well.
Better stop now. I’ll be feeding the loonies too many hair-brained schemes which they might take at face value!
Many magyar already pay 50% in taxes. Thats communism folks. Magyarorszag already proved this doesnt work. But they never learn.