Hungary rejects efforts by Brussels to advance “a kind of socialist, utopian economic strategy” through tax harmonisation and the communitization of taxation, Péter Szijjártó, the foreign affairs and trade minister, said at a conference organised by business daily Világgazdaság. Tax harmonisation, conducted by unifying member states’ tax policies, would set back competitiveness, while making taxation a supranational, rather than a sovereign matter, would spread the burden resulting from the undisciplined fiscal policy of some governments to other countries, Szijjártó said. Hungary’s tight fiscal policy and special measures have produced a decline in public debt relative to GDP even while the government initiates tax cuts, he added.
Szijjártó said cutting taxes further would be one of the government’s main tasks in the coming years. Businesses are expected to plough back savings from the lower taxes on labour into higher remuneration and technological developments, he added.