AD emocratic Coalition published inflation management proposals in the past few days. DK wants the government to temporarily reduce the General Sales Tax to 0 percent by the end of the year, and to 5 percent from January 1, 2023. Vasarnap.hu asked Csaba Bubenko, Egyenlő.hu, president of the Modern Trade Union, about the proposal .

 – How do you see how seriously the proposal of the Democratic Coalition can be taken?

- Not at all! From a political point of view, it could be seen that the previous VAT reduction proposal put forward by the government was not supported by the Democratic Coalition.

Thus, the idea of ​​the current 0 percent VAT from the Democratic Coalition sounds completely discredited.

Especially since before 2010, the president of the party, Ferenc Gyurcsány , who was still a politician in another party, did not cut taxes, but introduced austerity and increased the VAT.

- From an economic point of view, what happened during the VAT reductions of the past years?

- The experience is that the VAT reduction in practice favors multinational companies and multinationals. As an example, I could mention when the VAT on pork was reduced from 27 percent to 5 percent. The customers practically did not perceive anything of this. Traders practically swallowed the difference of the VAT reduction.

 - General sales tax is also an important source of income for the state, it would not be easy to give it up.

- That's right, VAT is an important tax revenue that must be handled very carefully. If we now produce a loss of taxes, it will - in our view - represent a problem for the budget. We, Egyenlő.hu, the leaders and members of the modern, Christian social trade union, have supported price restrictions for basic foodstuffs from the very beginning. Even then, we thought that a lot of little goes a long way. Click on the Ejenlő.hu page on the web , and all of this can be read by our dear readers. It proved to be a good decision. Rising inflation would have caused a huge price increase for basic foodstuffs as well. If a VAT reduction policy were to be introduced, on the one hand, the price cap would not be guaranteed, and on the other hand, what I have already referred to would also happen.

The full article from Vasarnap.hu can be read here.

Author and image: Gábor Tóth