Hungary is currently pursuing a left-wing economic policy that points towards tax increases, Viktor Orbán said in an interview on the television program Bayer Show on Monday evening. The former prime minister assessed the past six months since the parliamentary elections.
The FIDESZ politician said that Hungary had followed a work-oriented economic policy for 16 years, but that this had now been changed. Viktor Orbán added that
he could now see that raising taxes had become a key element of the government’s economic policy.
As an example, he cited the flat-rate tax for small business owners (KATA), the monthly amount of which was increased from 50,000 to 100,000 forints (to EUR 274; EUR 1 = HUF 364). Viktor Orbán made it clear that this change had doubled the tax burden for 138,000 KATA taxpayers and could affect around half a million people when their family members were taken into account.
He criticized what he considered to be the lack of any justification for the tax increase, arguing that opening up the KATA system to additional people did not, in itself, justify doubling the previous tax burden.
The politician explained that, in seeking an explanation for the current measures, he had come to the conclusion that tax increases were characteristic of left-wing economic policy.
It is the same situation now: a left-wing government, tax increases,”
he said.
Regarding the wealth tax, the politician explained that taxing successful businesses could slow investment, ultimately harming employees. He added that economic stakeholders also regarded this measure as detrimental because it weakened businesses and limited opportunities for employment growth.
The former prime minister pointed out that, given the current state of the Hungarian economy, any tax increase was harmful and that economic growth could be stimulated through tax cuts. He is convinced that increasing taxes on businesses and employers could undermine their ability to create jobs.
According to Viktor Orbán, a predictable economic policy and business-friendly tax cuts were necessary to reconcile the interests of employers and employees. As an example, he cited the three-year wage agreement concluded with trade unions and employers during the previous parliamentary term.
He argued that investments made by major industrial companies in Hungary in previous years were also contributing to the country’s current economic performance. These included projects by BMW, Mercedes-Benz and the Chinese company BYD. At the same time, the interviewee said that,
recently, no new decisions had been made to promote investment and business relocation to Hungary, and that, in his opinion, economic policy was moving towards increasing the tax burden.
Businesses needed to be supported through predictable economic policies, tax cuts and incentives, and successful entrepreneurs should not be punished but rather recognized for creating jobs, he emphasized.
The politician explained that, based on his meetings with Hungarian entrepreneurs and businesspeople, he had gained the impression that “Hungarian agriculture is in serious trouble, the construction industry has ground to a halt, and tourism is experiencing a double-digit decline”.
He said he could see everywhere that “the Hungarian economy is being driven into a wall” and that foreigners were already recruiting buyers for Hungarian productive assets, which were becoming increasingly cheap.
The former prime minister believes Hungary is currently pursuing a “neo-communist, radical left-wing economic policy,” and the government is taking money away from people, raising taxes and punishing those who work.
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Via MTI, Featured image: Facebook/Orbán Viktor
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