Global Minimum Corporate Tax Rejected By Hungary
- 19 May 2021 9:46 AM
- Hungary Around the Clock
Hungary will not accept a global minimum corporate tax, as it would lead to tax increases, Minister of Foreign Affairs and Trade Péter Szijjártó declared after meeting with Mathias Cormann, the next secretary general of the OECD.
The past decade has shown that tax increases are a dead end and that tax cuts are the best incentive for job creation and economic growth, he said.
He added that no one has the right to interfere in Hungarian tax policy from outside.
Hungary levies a 9% corporate tax, one of the lowest in Europe.
Introducing a global minimum corporate tax is contrary to the principles of a market economy and punishes countries that have managed to maintain fiscal and budgetary discipline that allows them to keep taxes lower, Szijjártó argued.
Hungary has the lowest corporate tax rate in Europe at 9% and the lowest taxes on labour at 15%, he said, adding that the competitiveness of the Hungarian economy and investment environment relies on low taxes.
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