Government spokesman: Global minimum tax spells competitive disadvantage for Europe

Zoltan Kovacs briefed the French press on the Hungarian government and parliament’s rejection of the planned European Union directive to levy a global minimum tax against multinational companies. He also talked about Ukraine’s EU candidacy and energy policy issues, the main topics of the EU summit starting on Thursday.

Speaking to MTI after the meeting, Kovacs said that the planned tax would in effect double the burdens of commodity-producing companies operating in Hungary, compared with the current 9 percent corporate tax rate. Drawing those companies to the country was key to creating 1 million jobs in the past years while keeping taxes law and simultaneously “expanding the budgetary room for manoeuvre”.

The directive would risk jobs in Hungary and bring about a competitive disadvantage, and so it is contrary to national interests, he said.

Regarding the two-day European Council meeting starting on Thursday, Kovacs said the bloc’s enlargement is in Hungary’s interest, especially in connection with policy for Hungarians across the border. Hungary supports the EU candidacy of Ukraine, Moldova, Georgia and Bosnia and Herzegovina because the enlargement is “a guarantee of European security and the solution to many economic and social issues,” he added.