Mihály Varga: We shall not yield ground on property tax and asset tax

roperty tax and asset tax may be put on the table at IMF-EU talks, but Hungary will not yield ground on these”, Mihály Varga Minister without portfolio responsible for the international loan negotiations said to commercial television TV2 on Friday.

Mihály Varga stated, “At the talks we shall draw attention to previous Constitutional Court decisions”, adding that “Hungary is currently unable to introduce a tax such as the property tax because conditions are not suitable, and the Constitutional Court has also made a decision to this effect”.

With regard to flat-rate tax, he said that it would be in place in a “pure form” for the first time from 2013. He added that the government would ask the IMF to wait and see what this system could achieve. He also recalled that IMF professional materials had previously also mentioned that a flat-rate system of taxation improves economic competitiveness.

According to the Minister without portfolio, the crisis will not last forever and the Hungarian system of taxation will then enable the economy to grow faster and create more jobs.

Mihály Varga reiterated that Hungary was seeking a precautionary credit line from the IMF. He said, the country could finance itself at the moment but given the European economy's current situation, it cannot be foreseen whether this will change or not.

Varga added, the deal would be concluded in autumn.

(Prime Minister’s Office)