Budapest to sue the state over solidarity tax payment in light of ruling

Budapest, February 24 (MTI)—In light of a recent ruling, the city of Budapest will sue the government over the solidarity tax contribution it had to pay “unlawfully,” Mayor Gergely Karácsony said on Monday.

“Budapest ought to get back the money that the government unlawfully took away from the city in 2023; the interests, worth some 6 billion forints (EUR 14.9m) on the total amount, should be paid back right away,” the mayor said on Facebook, adding that “the lawsuit is for the rest”. He said that his office had received a copy of the Metropolitan Court’s binding ruling, which had established that the government had unlawfully made the city pay some 28 billion forints (EUR 69.54m) worth of solidarity tax contribution to central coffers.

The mayor referred to the prime minister stating earlier that local governments had the right to defend themselves. “So, Budapest does have that right as well,” he said.

Near-bankrupt Budapest fights for its its money

Budapest has suffered severe revenue shortfalls due to the Hungarian Parliament’s cuts. The capital faces serious financial problems, while the Hungarian Government insists on deducting the solidarity tax. Experts say that if the municipality does not get its money, it could go bankrupt, which would be politically valuable for the government. If Budapest goes bankrupt, the government could appoint a person to solve the problem.

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