June 13th, 2012

Orbán: “Brutal” bank levy could go as early as January 2013


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.

  • matthew stuart

    The key word being “may” which I understand means “never” in Hungarian. When will people face reality – every good news story in Hungary is about what may happen in the future – after a while you know not to believe these things – why forigners have not woken up to this is hard to believe – hungarians stopped believing years ago. Yes, the bank tax may be fazed out (next year), hungary’s economy will grow dramatically and substainially (next year), although many young and talented people leave hungary or want to – most will come back (next year!), IMF deal (next year!) – just keep stringin them along. Why change things when you can get away with empty promises and the people at the top are perfectly happy – its the majority at the bottom who still live in fear and hopelessness that I feel sorry for.

  • Anonymous

    So the tax was “brutal” when it was levied on banks. How will it be described when it is levied on your grandmother as she pays the gas bill? It is high time the people of this country got out on the streets and let OV know how they feel.

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