Budapest, October 30 (MTI) – The radical nationalist Jobbik party said the 2015 budget will be dedicated to “new taxes and old austerity measures”, deputy group leader Janos Volner said on Thursday.
Volner told a press conference that the government is most innovative in introducing new taxes, while preserving the Socialist governments’ austerity measures and conserving their own.
He criticised the budget for not withdrawing any of the existing taxes while introducing a tax on the internet and maintaining the VAT at 27 percent, which he described as a hotbed for the black economy. He reiterated Jobbik’s call for 5 percent VAT on basic foodstuff and products necessary for raising children. He urged for family tax allowances promised for 2016 to be introduced next year.
The opposition Socialists said the 2015 budget bill is unacceptable in terms of tax revenues and also morally. Head of parliament’s budget committee Sandor Burany, of the Socialists, said in a statement that the party expects the cabinet to withdraw the budget bill and submit it again after the current tax hikes are taken out. According to Burany, the internet tax will restrict the freedom of information and the press, will hinder people’s opportunities for finding work and education, deepen the gap between the poor and the wealthy, and make communication more difficult between young Hungarians working abroad and their families in Hungary.
The opposition Democratic Coalition (DK) said the 2015 budget will deteriorate living conditions for families. Party spokesman Zsolt Greczy said even the government has admitted that people will pay more tax next year than in 2014 and added that pension increase will be less than previously promised.
The inflation figures cited by the government are not realistic because the VAT has remained at a “world record” high. Burdens on companies will be reduced by a small extent but this will be insufficient to help economic growth and the creation of new jobs, he added.