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Hungary rejects OECD tax package

The restarting of the Hungarian economy will be faster than in other EU countries, Minister of Finance Mihály Varga said.

During the meeting of the European Union’s finance ministers (ECOFIN), the ministers were also briefed on the outcome of the G20 meeting of finance ministers and central bank governors. Regarding this, Mihály Varga stated that the “two-pillar” package of international tax proposals of the Organization for Economic Co-operation and Development (OECD) is still far from what is acceptable for Hungary.

We continue to reject any international solution that restricts fair tax competition, he added.

Varga also reported that the finance ministers had approved Council decisions to adopt the first 12 national recovery plans assessed by the Commission and are thus one step closer to the effective operation of the Recovery and Resilience Facility (RRF) decided upon by the heads of state and government a year ago.

According to forecasts, the restarting of the Hungarian economy will be faster than in any other  EU country.

In 2022, the European Commission expects a 5 percent increase in Hungarian GDP versus 4.5 percent growth for the EU as a whole, the finance minister emphasized.

Varga added that all of this is in line with the forecasts of several international organizations and analysts as well and confirms that we have gained an advantage over other countries in the Union. 

While the European Commission forecasts that the economic performance of member states may return to pre-epidemic levels by the end of 2022, the Ministry of Finance estimates that Hungary can reach pre-epidemic levels this year. 

He emphasized that encouraging forecasts alone are not enough, and the Hungarian government is working hard to achieve the target of 5.5 percent economic growth. If it succeeds, we will be able to meet the PIT reimbursement for those raising children in 2022, which could also contribute to dynamic economic growth, Varga added. 

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