Special bank, retail tax to add 259 million euros to anti-virus funds

Two government decrees levying extraordinary taxes on banks and on big retail businesses published on Tuesday are expected to raise a combined 91 billion forints (EUR 259m) aimed at funding efforts to fight the coronavirus pandemic, the finance ministry said in a statement.

Both decrees will take effect on May 1.

Banks will have to pay 0.19 percent of the part of their 2020 tax base that exceeds 50 billion forints. They will have to pay the extraordinary levy in three equal parts, on June 10, September 10 and December 10 this year.

The extraordinary tax on retail businesses, including online sellers, will be payable by those with annual net revenues in excess of 500 million forints. The ministry expects to raise 36 billion forints from the tax.

The tax will be 0.1 percent of annual net sales revenue between 500 million and 30 billion forints, 0.4 percent on net revenue falling between 30 billion and 100 billion forints and 2.5 percent for the part exceeding 100 billion forints.

The affected businesses will have to calculate and pay a monthly advance of the tax, first on May 31. Businesses are entitled to receive a proportionate discount from the monthly advance if their retail revenue in the previous month dropped more than 40 percent year-on-year.

Government gives payroll tax breaks to farm, food companies

Hungary’s government is giving payroll tax breaks to companies in the farm and food sectors hit by measures to contain the spread of the novel coronavirus, Agriculture Minister István Nagy said at a daily press briefing of the body coordinating Hungary’s response to the pandemic on Tuesday.

Companies in the ornamental plants business and hunting, as well as producers of wine, spirits made from local fruit and craft beer will be exempt from payroll tax with the exception of the 4 percent health insurance contribution, which will be capped at 7,710 forints (EUR 22), Nagy said.

The government has also decided to double the limit on state-subsidised Szechenyi revolving credit farmers take out to 200 million forints, while increasing the subsidy for interest and fees to 100 percent, he added.

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Source: MTI