May 5th, 2010

PM-elect against merging central bank with financial watchdog

Merging Hungary’s financial market regulator PSZAF and the National Bank of Hungary (NBH) would make no sense at the present time, Prime Minister-elect Viktor Orban said in a television interview on Monday. Mr Orban said there would be tax cuts from July 1.

Details of the tax cuts will depend on the findings of a fact-finding commission led by Prime Minister Office State Secretary Mihaly Varga, Mr Orban said.

Incoming economic minister Gyorgy Matolcsy said earlier Monday that the commission led by Mr Varga, reviewing the state of the budget and the economy, is expected to present a report in the middle of June.

Asked about the future of simplified or special taxes for certain trades such as the EVA or ekho, Mr Orban said rather than scrapping they would extend them. The aim is to create the simplest and easiest way of taxation for private entrepreneurs under a specified level of value or turnover, Mr Orban said.

Mr Orban said it would make no sense to merge PSZAF with the central bank just to resolve a personal issue. Mr Orban as well as other Fidesz leading politicians have suggested NBH governor Andras Simor was unfit for his post because of his former ownership of a Cyprus-based offshore company.

Asked about his party’s candidate for the post of Hungary’s president, Mr Orban said that the parliamentary group of Fidesz will formulate its proposal at a meeting on June 28.

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