State Secretary Zoltán Kovács said the European Union’s planned global minimum tax for large corporations would bring a competitive disadvantage to Europe, as nowhere else has such a measure been introduced as mandatory regulation with an abrupt starting date.
According to MTI, Kovács briefed the French press on the Hungarian government and parliament’s rejection of the planned European Union directive to levy a global minimum tax against multinational companies. He also talked about Ukraine’s EU candidacy and energy policy issues, the main topics of the EU summit starting on Thursday. Kovács said that the planned tax would in effect double the burdens of commodity-producing companies operating in Hungary, compared with the current 9 percent corporate tax rate. Drawing those companies to the country was key to creating 1 million jobs in the past years while keeping taxes low and simultaneously “expanding the budgetary room for manoeuvre”. The directive would risk jobs in Hungary and bring about a competitive disadvantage, and so it is contrary to national interests, he said.
Photo credit: Facebook/Kovács Zoltán