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MEPS’ PROPOSED VAT CAP ‘WOULD RESTRICT SOVEREIGN TAX POLICY’

Hungary’s government believes a proposal by the European Parliament to cap VAT rates at 25% would restrict sovereign tax policy, business daily Világgazdaság said. MEPs voted in Strasbourg on Wednesday to propose setting a maximum VAT rate of 25%. Hungary’s main VAT rate is 27%, the highest in the European Union. “Brussels and the left wing want to raise the personal income tax, and they want to end tax preferences for children. That’s the real aim, that’s why they want to restrict the sovereign tax policy of member states,” a government official told the paper when asked to comment on the matter.