Hungarian Parliament approves higher "Robin Hood" tax on energy companies

Hungarian lawmakers have on Monday green-lighted a bill that keeps the so-called Robin Hood tax alive only under different terms. The rate of the tax will go up to 11% from the current 8% from 2013 and the tax will be levied no only on energy firms (electricity and gas providers) but also on water and sewage companies, as well as on regional waste management companies, Hungarian newswire MTI reported.


The government announced on 23 April that it would not only maintain but also extend the income tax levied on energy producers. This measure is expected to bring HUF 55 billion to state coffers in 2013. In practice this means that while the cabinet promised the phasing out of the so-called Robin Hood tax, the levy will remain in the system. Its rate was to be raised to 18% from 8%, but in the end the new rate was set to "only" 11%.  The special levy imposed on energy companies on 2010 will be phased out in 2012, as planned. Last year this generated HUF 99 bn revenues for the budget.
This old/new levy was approved by Parliament on Monday.
The tax base will be further broadened by the fact that the crisis tax will be phased out, since it was deductible from the tax base previously. The aforementioned change is to generate HUF 55 bn more to state coffers compared to the previous scenario that took into consideration the phasing out of the sectoral levy.
Hungarian financial portal, Portfolio.hu commented on the government’s green light to the tax as follows: The approved bill is in line with the recent communication by the government, although it is new that the revenues will go into the central budget, unlike under the previous practice when these were earmarked for special purposes (e.g. energy saving projects). But as the collected revenues had generally been spent on other purposes anyhow, the change is not earth shattering at all.
Source: Portfolio.hu, MTI

Last Updated on Friday, 30 August 2013 09:11