Prime Minister Viktor Orbán signed on Monday a memorandum of understanding which outlines a reduction in the bank levy in 2016-2019.

Revenue from the levy, introduced as a “crisis tax” in 2010, is set to fall by 60 billion forints (EUR 195m) in 2016 from a targeted 144 billion forints in 2015.

Varga said the government expects economic growth to exceed 2% in 2016, boosted in part by increased lending activity by banks.

This growth will generate an extra 200-250 billion forints in budget revenue, making up for the fall in revenue from the lower bank levy, he added. Parliament could vote on legislation reducing the bank levy in the autumn, Varga said.

According to the memorandum of understanding, the government “will take the necessary steps for developing and proposing appropriate legislation to its legislative body” on the reduction of the levy by June 2015.

Source www.hungarymatters.hu

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