Fidesz MEP Enikő Győri said the EU’s plan to implement the global minimum tax would bring a competitive disadvantage to Europe given that countries elsewhere in the world have not yet approved the tax.
Hungary is exercising its right to stop a process it sees as detrimental to Europe, Enikő Győri told a European parliamentary plenary after European Commissioner for the Economy Paolo Gentiloni called on Hungary to “rethink” its stance on the tax. Gentiloni said the 15 percent minimum tax would be an important economic and social measure. Hungary, the only member state to oppose the tax, cited economic fallout from the war in Ukraine for its opposition, yet revenues from the tax could be used to protect EU citizens against the war’s impact, he said. Meanwhile, corporations should pay taxes where they are turning a profit, he added. Győri said in response: “Let’s not become our own enemy: there’s a war raging; the priority should be damage control.” The tax’s first pillar, the taxation of large digital companies, has stalled, she said, adding that the tax has not been introduced by the EU’s partners in Asia or America, so it would put European corporations at a competitive disadvantage. The proposal needs further work in the interest of European unity and competitiveness, she added.
Photo credit: fidesz-eu.hu