In the current situation, the introduction of the global corporate tax minimum would practically mean a coup d'état for the European economy, the measure would also put Hungary under extraordinary tests, according to the ministry's statement, Minister of Foreign Affairs and Trade Péter Szijjártó stated on Wednesday in Washington.
First of all, the head of the ministry reported that due to the war in Ukraine, there were disturbances in the energy supply, a permanently high inflationary environment was created, and in many cases the sanction measures hurt Europe more than Russia.
He stated that in this situation, the government does not support the introduction of the global minimum tax, as it would put hundreds of thousands of jobs in danger in our country, and in terms of corporate tax, it would mean a return to the 2010 situation.
He also pointed out that one of the keys to Hungary's competitiveness and one of the most important bases for investment records is the low corporate tax, which, although officially 9 percent, is practically around 6-7 percent when supplemented with discounts and investment subsidies, so with the implementation of the minimum rate, the would double.
Péter Szijjártó emphasized that there is a strong debate on the subject in the United States as well, the global minimum tax was the political objective of the Democratic government, however, following the mid-term elections in the fall, there may be a major internal political reorganization, and the Republicans expressly oppose its introduction.
He reminded her that the United States expressed its protest against the Hungarian veto on many channels, and in the framework of this, they also decided to repeal the agreement on the avoidance of double taxation.
"We can rightly trust that if there is a different kind of political wind in Washington, then this can be expected to come into effect again"
he announced.
The minister underlined that
the negative effects of the dispute between the parties are not yet felt in bilateral economic cooperation, American companies support the low tax burden in Hungary.
He said in this regard that the leaders of the companies are not concerned with this disagreement, but rather with high inflation, that the prices of raw materials and energy carriers have skyrocketed.
"That's why it's important to do everything in Hungary to be a kind of local exception to this great global downturn"
- he said, referring to the importance of price caps, controlled inflation, low tax burdens and utility reduction.
During the day, Péter Szijjártó meets with the heads of ten important American companies, two Republican senators and five representatives, and participates in the business meeting of the conservative advocacy organization Americans for Tax Reform (ATR), where he gives a presentation on Hungarian economic policy and the dangers of the global minimum tax.
MTI
PHOTO: MTI/TIBOR ROSTA
