Hungary does not support the introduction of a global minimum tax, Foreign Minister Péter Szijjártó said, arguing that the tax would be harmful and threaten jobs. International pressure to introduce a global minimum tax in Europe as early as the start of next year is growing, Szijjártó said on Facebook. “We consider this extremely dangerous,” he said, noting the war in Ukraine and the European economy contending with sky-high energy prices, rising interest rates and inflation, as well as supply chain disruptions. Increasing the tax burdens of European companies would cause serious problems, especially given that the global minimum tax would only be introduced in Europe, the minister said. The minimum tax would put European businesses at a serious competitive disadvantage against their global rivals, he added.
“But of course central Europe would be hit hardest of all,” Szijjártó said. Thanks to disciplined fiscal policies, central Europe has the lowest corporate and payroll taxes, which would see a drastic increase if the global minimum tax were to be introduced, he said. The key to Hungary’s economic success is that it has continually cut taxes in recent years, Szijjártó said, arguing that tax increases would hurt the economy and threaten jobs. “We cannot support such a proposal,” Szijjártó said. He said this will be the position Finance Minister Mihály Varga will represent at Friday’s Ecofin meeting.