Constitutional Court Repeals Property Tax Law
Wednesday, January 27th, 2010
The Hungarian Constitutional Court (AB) on Tuesday declared the so-called ‘wealth tax’ bill unconstitutional, putting an end to the threat of family bankruptcies analysts have forecast for Hungary, due to its ‘property tax’ law.
Passed last June, the ruling would have taxed homes worth over HUF 30 million, as well as second homes worth HUF 15 million.
Speaking on Wednesday, PM Gordon Bajnai said the remainder of his term will not suffice to amend the controversial legislation. However, the budget must be reviewed to compensate for the loss of revenue, he added.
Aspects of the bill relating “expensive boats, aircraft and luxury cars” have remained.
Center-right opposition spokesman Peter Szijjarto said the ruling clearly shows that the Hungarian people have won and the cabinet has fallen.
