Hungary’s Orban Calls Global Minimum Corporate Tax Plan ‘Absurd’
(Bloomberg) -- Hungarian Prime Minister Viktor Orban said a plan to have a global minimum corporate tax rate was “absurd” as it would have the effect of stripping the European Union member state of investments.
Group of Seven finance ministers agreed last weekend to try to force the world’s biggest companies to pay a minimum corporate levy of 15%, well above the 9% rate introduced by Orban in Hungary. The EU needs unanimity among its member states on most tax matters, so dissent within the bloc may complicate an international agreement.
“I find it absurd that any kind of global organization tell us what sort of tax we should or shouldn’t have in Hungary,” Orban said at a conference in Budapest on Wednesday. He said Hungary’s low corporate levy attracted real investments, unlike in tax havens.
Any kind of international plan to streamline corporate taxes will take years, Orban predicted, though he said Hungary must come with a contingency plan so it can continue to attract investments in any case.
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