The opposition LMP party on Tuesday slammed government plans to scrap the tax allowance on social contributions for citizens over 55.
The measure is “simple extortion” aimed at patching up a larger-than-expected structural deficit, Erzsébet Schmuck, deputy group leader of green party, told a press conference.
The move will save about 50 billion forints (EUR 153m), less than the prime minister’s move to the Buda Castle, she said.
Commenting on Finance Minister Mihály Varga’s argument that the social contribution tax for pensioners should be scrapped altogether, Schmuck said most Hungarians only retire at around the age of 65. Scrapping the allowance would still affect hundreds of thousands of people, she added.
The government has also failed to consult interest groups, “which shows the government’s disdain for employees”, she said.
Schmuck said LMP was “very likely” to vote for the 2019 budget if the government backed the party’s amendment proposals. “But usually they don’t,” she added.