Reporting on his discussion with U.S. Secretary of State Antony Blinken, the foreign minister emphasized that the lower the taxes are on work and businesses, the more it helps competitiveness.
The global minimum tax would bring a competitive disadvantage to Europe given that countries elsewhere in the world have not yet approved the tax.
Zoltán Kovács briefed the French press on the Hungarian government and parliament’s rejection of the planned EU directive to levy a global minimum tax against multinational companies.
The introduction of the tax that the European Union favors would undermine the government’s tax-cutting policy.
Adopted with 118 votes in favor, 32 against and 6 abstentions, the resolution said parliament opposed the directive in view of the inflation and economic crisis caused by the war in Ukraine.
The global minimum corporate tax would put jobs at risk around the world while producing companies would raise prices as their tax burden increases.
The Hungarian government will resist the growing international pressure and reject the related directive.
Minister Szijjártó said on Facebook that international pressure to introduce a global minimum tax in Europe as early as the start of next year is growing.
Hungary is not keen on a global minimum tax because it would undermine European competitiveness.
The head of the Hungarian parliament’s economic committee said the body will submit a proposal calling on Hungary’s parliament to reject the directive.
Hungary’s 9 percent corporate tax rate is the lowest in the European Union, and this has given the country a clear advantage in the race for international investments.
Hungary fully supports the fight against base erosion and profit shifting, but we believe that the fight against harmful tax competition should not become a fight against the competitiveness of tax systems.