The United States has canceled the double taxation agreement concluded with Hungary 43 years ago, the Minister of Foreign Affairs and Trade announced on his Facebook page on Saturday.
According to Péter Szijjártó, the reason is clear: Hungary is resisting the introduction of the global minimum tax and the accompanying tax increase.
According to the head of the ministry, Europe's economy must now operate in a long-term wartime inflationary environment. If the tax burden of production companies were to increase under these circumstances, it would have a dramatic effect, he added.
He emphasized that European competitiveness is already "in ruins" due to the runaway energy prices, and the introduction of the global minimum tax would mean a "punishment".
"We Hungarians have worked hard to have the lowest taxes in Europe. The introduction of the global minimum tax would mean that the corporate tax burden on Hungarian production companies would practically double. This would put tens of thousands of Hungarian jobs at risk. Based on all this, no matter how great the pressure is on us, of course we do not support the introduction of the global minimum tax in Europe, we do not risk the jobs of tens of thousands of Hungarians, and we continue the tax-related professional consultations with our Republican friends," said Péter Szijjártó.
Source: magyarhirlap.hu
Featured image: MTI/Tibor Rosta
