The Prime Minister did not rule out modifying the telecoms tax, which would impose a Ft 2 levy on each calling minute and SMS text message starting in July. “I have put forward concepts, but now we have long debates with professional groups ahead of us,” Orban told reporters.

At the caucus meeting, Economy Minister Gyorgy Matolcsy, citing his grandmother's calling habits, proposed to cap the telephone tax at Ft 700 per month per subscriber, as well as making the first 10 minutes each month tax free.

The government is also planning to introduce means testing for benefits and reduce fees for poorer families on the financial transaction tax, which would affect money transfers between bank accounts, payments with bank cards and cash withdrawals, among other transactions.

The financial transaction tax would be paid by financial institutions and not by households, Orban stressed. The Prime Minster said regulations would be worked out to prevent companies from passing on these levies to their customers.

Orban also addressed comments made by OTP chairman and CEO Sandor Csanyi on Tuesday. Csanyi spoke against the introduction of the transaction and telecoms taxes saying it would be risky if only Hungary was to introduce this tax. “We have to examine thoroughly and carefully any loopholes that might arise if only Hungary was to introduce this tax,” Orban said.

Source: Hungary Around the Clock

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