The Government is to grant tax relief of up to 30% of the bank tax for lenders which have increased the volume of corporate lending since 2009, the onset of the financial crisis, Minister for National Economy Mihály Varga said at a press conference in Budapest.
The Minister added that the total reclaimable amount will be capped at HUF 10bn and the tax relief will be applicable as of 2016.
Speaking about the 2016 Budget, the Minster pointed out that it is based on three pillars: tax reduction, wage hikes and boosting investment.
The tax relief will equal the increased amount of corporate loan stock, but it cannot exceed 30 percent of bank tax payable by the lender. In case requested refunds breach the HUF 10bn ceiling, the amount of refunds will be proportionately distributed among lenders which – instead of deleveraging – had opted for increased lending after 2009. The Minister stressed that the decision has been made following negotiations with the Hungarian Banking Association and the institution had endorsed the proposal.
With regard to amendment proposals submitted by opposition parties, Mihály Varga said these do not contain any viable alternatives; they were such deficit-inducing, “irresponsible” recommendations which would endanger economic achievements reached thus far and risk pension and welfare expenditures. Expenditure increases proposed by the parties would total HUF 2000bn each, while all of them had failed to name measures to cover this amount on the revenue side.
(Ministry for National Economy)
