Hungary’s PM Calls Socialists Hypocritical Over Vatcut Proposal

  • 28 Apr 2015 9:00 AM
Hungary’s PM Calls Socialists Hypocritical Over Vatcut Proposal
Prime Minister Viktor Orbán in parliament has dismissed a Socialist proposal to cut value-added tax on some products and called the opposition party “hypocritical”. The Socialists want to reduce “the very VAT which they raised high-sky”, Orbán insisted, responding to a proposal by Socialist MP Zoltán Gőgös to reduce VAT on products rather than cutting personal income tax in 2016.

Gőgös argued that his proposal would help low-earners and combat the black market. Radical nationalist Jobbik MP Dániel Z Kárpát called Hungary’s 27% VAT “the engine of the illegal economy,” which also weighs on the poorest. He repeated his party’s proposal to reduce VAT to 5% for basic food stuffs and products for children.

The prime minister responded that the government sought to focus taxes on consumption rather than on labour.

He insisted that cutting taxes on labour and convincing people that “it is worth working” was crucial to meet the government’s objective of completely eliminating unemployment.

In his answer to a question by another Jobbik MP concerning nurses’ wages, Orbán said that between 2011 and 2013 the government had raised the salaries of some 75,000 nurses and doctors in the sector by about 25%.

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