Hungary’s extraordinary bank levy could be completely phased out in 2013, earlier than planned, Prime Minister Viktor Orban told business leaders in answer to question by a Raiffeisen Bank official in Vienna on Tuesday. It can easily happen that the extraordinary levy will be phased out not only partially but completely on January 1, 2013, and a duty on financial transactions will be introduced instead, the Prime Minister said, adding that details of the transaction duty are yet being discussed.
The extraordinary bank levy is scheduled to be halved next year under a December agreement between the Hungarian government and banks. The levy was introduced as a temporary measure in 2010.
Responding the bank official’s critical remark, Mr Orban agreed that the size of the tax was “brutal”.
The financial transaction duty is expected to generate large revenue which, if materialises, will be spent to cut income and social taxes, that is to improve competitiveness, Mr Orban said.