Economy
Hungary ombudsman to launch probe into financial transactions tax
The news agency contacted Financial Affairs Ombudsman György Doubravszky to find out whether his office was considering a probe into the implementation of the financial transactions tax, effective as of 1st January, and the practice of banks passing the cost through to clients. The Ombudsman replied to the question sardonically, claiming he "welcomed the sincerity of the Secretary-General of the Hungarian Banking Association," referring to a statement by Levente Kovács who in a Monday morning radio programme said banks were passing through the financial transactions tax in its entirety to clients. Doubravszky has confirmed plans for an investigation into banking costs paid by clients in Hungary as opposed to other European countries.
Hungary's Parliament passed legislation on a financial transactions tax in July and November 2012; the new tax came into effect as of 1st January 2013. Pursuant to the amendment approved in late November last year, financial transactions are subject to 0.2% tax, capped at HUF 6,000 per transaction. A higher rate of 0.3% applies to cash withdrawal from a current account, or cash withdrawal via ATM, with the same HUF 6,000 cap.
The government is projecting HUF 340 billion revenue to be collected as financial transactions tax in 2013, of which banks are estimated to pay HUF 260 billion, while the remaining HUF 80 billion is to be paid by the State Treasury. Contrary to earlier plans, the National Bank of Hungary is exempt from financial transactions tax.
The Ombudsman of Financial Affairs is a new government office set up by the Economy Ministry in late December 2012, to fulfill "classic roles such as legal counsel and advisory functions" as well as educating the general public to facilitate more informed personal finance decisions.
Hungary's Parliament passed legislation on a financial transactions tax in July and November 2012; the new tax came into effect as of 1st January 2013. Pursuant to the amendment approved in late November last year, financial transactions are subject to 0.2% tax, capped at HUF 6,000 per transaction. A higher rate of 0.3% applies to cash withdrawal from a current account, or cash withdrawal via ATM, with the same HUF 6,000 cap.
The government is projecting HUF 340 billion revenue to be collected as financial transactions tax in 2013, of which banks are estimated to pay HUF 260 billion, while the remaining HUF 80 billion is to be paid by the State Treasury. Contrary to earlier plans, the National Bank of Hungary is exempt from financial transactions tax.
The Ombudsman of Financial Affairs is a new government office set up by the Economy Ministry in late December 2012, to fulfill "classic roles such as legal counsel and advisory functions" as well as educating the general public to facilitate more informed personal finance decisions.
