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Hungarian Prime Minister Viktor Orban said a plan for a global minimum corporate tax rate was “absurd” as it would deprive EU member states of investment.
The group of seven finance ministers agreed last weekend to try to force the world’s largest companies to pay a minimum tax of 15%, well above the rate of 9% introduced by Orban in Hungary. The EU needs unanimity among its member states on most tax matters, so disagreements within the bloc can make an international agreement difficult.
Britain is pushing for financial exemption from the global tax treaty
“I find it absurd that some kind of global organization dictates what kind of taxes we should or should not have in Hungary,” Orban said at a conference in Budapest on Wednesday. He said Hungary’s low corporate tax, unlike tax havens, attracts real investment.
Any international corporate tax tightening plan would take years, Orban predicted, although Hungary would have to come up with an emergency plan so that it could continue to attract investment in any event.
– With the support of Richard Bravo
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