Economy
Hungarian banks find new financial transaction tax unacceptable - Patai
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Mihály Patai, who is also Chief Executive of the Hungarian unit of Italy's UniCredit, said banks would aim for a compromise with the government in order to limit next year's extra tax burden to around HUF 60 billion,as agreed with the government late last year.
The banks will also fight for a cap on the new tax, which was in the original plans but than omitted by the cabinet.
"The leaders of the Bank Association were completely taken aback by this slap in the face, the government's decision yesterday," Patai said.
The government approved a measure on Wednesday to raise an annual HUF 130 billion from a new financial transaction tax, which will have to be paid by banks performing the transactions.
This will come on top of an earlier windfall tax on banks, charged between 2010 and 2012, which the government agreed to halve in 2013.
Patai said the increased tax burden would hurt bank lending and economic growth, adding that the banks will seek compromise in the negotiations on the new tax with the government in the coming weeks.
The banks will also fight for a cap on the new tax, which was in the original plans but than omitted by the cabinet.
"The leaders of the Bank Association were completely taken aback by this slap in the face, the government's decision yesterday," Patai said.
The government approved a measure on Wednesday to raise an annual HUF 130 billion from a new financial transaction tax, which will have to be paid by banks performing the transactions.
This will come on top of an earlier windfall tax on banks, charged between 2010 and 2012, which the government agreed to halve in 2013.
Patai said the increased tax burden would hurt bank lending and economic growth, adding that the banks will seek compromise in the negotiations on the new tax with the government in the coming weeks.
