Olga Kalman

DK to launch petition drive against plan to scrap KATA tax

The Democratic Coalition (DK) will launch a petition drive in protest against plans by the government to scrap the preferential Itemised Tax for Small Businesses (KATA), the opposition party's parliamentary group spokeswoman said on Sunday.

The finance minister and the president of the Hungarian Chamber of Commerce and Industry both admitted recently that the government was considering to scrap the KATA tax, Olga Kalman told an online press conference.

KATA taxpayers who earn up to 12 million forints (EUR 30,530) a year pay a flat monthly 50,000 forints instead of corporate or payroll tax.

“Scrapping this favourable form of tax would bring a significant tax increase and austerity destroying several thousands of small businesses,” Kalman said, adding that the tax increase “would obviously be one of the components of Fidesz’s austerity package which the Orban government started to announce this week”.

She said DK firmly rejected ruling Fidesz’s austerities including tax increases and will not allow small Hungarian businesses “to pay the price of its mistaken economic policies”.

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