EU drops infringement procedure over Hungary retail tax
(MTI) – The European Commission has concluded an infringement procedure against Hungary over a sectoral tax concerning retail trade without initiating further proceedings at the European Court of Justice, the National Economy Ministry told MTI on Friday.
In a statement, the ministry quoted the Commission’s earlier position that the retail tax was discriminative with regard to foreign companies, and that the tax, based on the subject’s earnings, could not be made progressive.
The Commission, however, decided that similarly to an earlier procedure concerning Hungary’s telecoms tax, it was not necessary to file a suit against Hungary at the European Court, the statement said.
“The Hungarian government welcomes the European Commission’s decision as it supports Hungary’s consistently maintained position that sectoral taxes did not violate European law,” the ministry said in its statement.
The European Court of Justice on February 5 ruled that Hungary’s sectoral tax on retailers was discriminatory, putting companies with owners in other European Union states at a disadvantage. Retailers in Hungary with annual revenue over 500 million forints are required to pay the sectoral tax, which is calculated as a proportion of revenue: either 0.1 percent, 0.4 percent or 2.5 percent, depending on turnover.
Photo:Â kozpontban.hu
Source: http://mtva.hu/hu/hungary-matters
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