Hungary's government damaging EU’s international reputation and reliability

Tax

"The decision of Hungary's government to hold back the OECD deal is illogical and inconsistent. The reasons presented, especially the impact of the war in Ukraine, do not make sense. The global OECD agreement is undoubtedly a political success. Efforts to kill it are irresponsible and against the interests of the European economy. The time has come to effectively end aggressive tax planning around the world and within the Union to ensure that large companies pay their fair share of taxes. The OECD agreement, backed by more than 130 countries, which included Hungary, is a very important contribution towards this goal. We call on the Hungarian Government to show responsibility and support the agreement now", said Luděk Niedermayer MEP, EPP Group negotiator on a Resolution on the subject to be voted on by the European Parliament today.

The Hungarian Government has blocked the adoption at EU level of the Organisation for Economic Co-operation and Development (OECD) deal, which would impose a 15% minimum tax on multinational companies. The tax reform is part of a global agreement reached last year at the OECD and endorsed by 136 countries representing more than 90% of global GDP.

"The struggle to agree on a position on minimum taxation is becoming farcical. First, the Polish Government held Europe hostage; now it is the turn of the Hungarian Government. Both countries clearly have motives that have nothing to do with taxation policy. This should prompt a reflection on Council voting procedures. Not being able to transpose a global agreement such as the OECD tax deal also damages the EU’s reputation and reliability on the international stage", said Markus Ferber MEP, EPP Group Spokesman on Economic Affairs.

"The minimum effective tax rate of 15% is a concrete and ambitious solution. It would allow to fight tax havens, while preserving European companies’ competitiveness. It would ensure a tax competition which is fair, loyal and transparent. Some people are doing their bit, and we can only hope that the Hungarian Government will, for once, be responsible and that the Council will, once and for all, be firm. That is what we are asking for. That is what Europeans are demanding", said Lídia Pereira MEP, EPP Group Spokeswoman in the Subcommittee on Tax Matters.

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The EPP Group is the largest political group in the European Parliament with 176 Members from all EU Member States

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