February 3rd, 2010

Watered-down property tax to affect 2.5% of cars in Hungary

About 2.5 percent of cars registered in Hungary could be subject to the property tax, watered down recently to exclude real estate, national daily Nepszabadsag said on Tuesday.

The constitutional court ruled last week that the newly introduced property tax should only be applied to property other than real estate.

Of about three million cars on Hungarian roads, some 75,000 will fall under the tax, including ones with foreign licence plates, the paper said, citing estimates from the finance ministry.

The new tax law will consider the car’s power and age when calculating the amount to be paid, the paper added.

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