The Hungarian government will not accept the introduction of a global minimum tax as it would lead to tax increases in Hungary, Foreign Minister Péter Szijjártó told MTI in Paris after meeting with Mathias Cormann, newly appointed secretary general of the Organization for Economic Co-operation and Development (OECD).
The minister said that over the past decade it has become clear that tax increases are a dead end, while the most effective incentives for job creation and economic growth are tax cuts.
No one has the right to intervene in the Hungarian tax policy from abroad,
Szijjártó said, adding that Hungary will persist in retaining the definition of tax rates a national competence.
According to Péter Szijjártó, it has become evident that Hungary has provided the most successful economic response to the consequences of the pandemic, as well as the fact that the right economic policy focuses on reducing taxes, supporting investment and saving jobs.
In his view, it is now clear that tax increases lead nowhere, and whoever fails to make economic policy decisions without ideological debates will fall behind in the competition that is about to establish the new era in the global economy.
We are seeing the emergence of policies around the world that make the restart of the global economy harder, and the one aimed at the introduction of a global minimum tax is one of them
said Péter Szijjártó.
He explained that the concept of introducing a global minimum tax goes against the principles of the market economy and is aimed at supporting countries that have failed to establish the level of fiscal discipline that would allow the introduction of low tax rates.
He pointed out that one of the key elements of the competitiveness of the Hungarian economy and investment environment is that the country has the lowest payroll and corporate tax rates in Europe. Maintaining financial and fiscal discipline is an important precondition for this, and since other countries were not able to achieve that, they were unable to reduce taxes.
Hungary will continue to apply the principle of "work instead of aid" principle and will continue to pursue a policy of tax cuts in the future.
We will not accept any international pressure or regulation that would lead to tax increases in Hungary
At the same time, he agreed that a solution must be found to the taxation of large technology companies, and that these companies should pay their taxes in the countries where they operate.
Let's not allow tech giants to enjoy an unfair competitive advantage in the absence of international tax regulations
the Minister said, adding that the OECD would play a major role in resolving the issue.
The newly appointed Secretary General of OECD will take office on 1 June, and Péter Szijjártó was the first to be received by him since his election.
According to the Hungarian Foreign Minister, Australian Mathias Cormann takes a pragmatic, sensible approach, intending not to allow ideological debates influence economic policy concepts.
It is important for us that the OECD continues to support member countries in making the economic decisions needed for economic development, while respecting that economic policies should always remain a national competence
stated Péter Szijjártó, noting that the new Secretary General is a guarantee of this, which is why Hungary supported him during his candidacy.