US Treasury on Friday announceto end the 1979 double taxation treaty with Hungary after Budapest decided to veto the introduction of a new global minimum tax of 15 percent in the European Union.
Three ministers responded to the US announcement within a short period.
- Foreign Minister Peter Szijjarto The reason is obvious: Hungary is resisting the introduction of a global minimum tax and the accompanying tax increase. The introduction of a global minimum tax would mean that the corporate tax burden on Hungarian production companies would practically double. He believes this will jeopardize tens of thousands of Hungarian jobs.
- Finance Minister Mihaly Varga The United States said on Saturday that the United States wants to pressure Hungary to change its position on the global minimum tax by ending the double taxation agreement.
- Gergeli Golias, the minister in charge of the prime minister’s office, believes on Sunday this was an exercise in lobbying for Hungary to accept global minimum taxes. Gergeli Golias, who said that the agreement replacing the 1979 agreement, which is now being terminated, was already signed in 2010 by then-Finance Minister Peter Osko with his US counterpart, but the US legislature has not yet adopted it, the minister said: 2010 will address all the problems, but the US government intends to use this issue to apply pressure. The agreement that will now be terminated will remain in effect until January 2024, so Americans want to achieve that we adopt the global minimum tax in the next year and a half, and then they will probably be ready to ratify the 2010 agreement – referring to Gergely Julias, who reiterated: “Suffice this small step by a great power.”
After that, it is no longer surprising that the ruling parties are also preparing for something in the Parliament’s Economic Committee. The date of the committee meeting is on Monday on the agenda Because it is listed in point 3
Proposal for a political statement on the rejection of political pressure contrary to the protection of Hungary’s economic interests.
According to the agenda, the committee decides whether to submit an independent proposal. The invitation also reveals that this agenda item is a new proposal and was presented to the committee on Saturday evening.
