BUDAPEST, 20 (DPA / EP)
The Prime Minister of Hungary, Viktor Orban, announced this Saturday a reduction in taxes on companies, a tax reduction that will impact the coffers of the cities, which are the ones who collect them and which are also mostly controlled by the opposition to the president.
“In the pandemic we must protect families and businesses as much as human lives. For us, all human life and all work counts,” Orban said in a video posted on his Facebook.
This action is expected to have a severe impact on some of the 3,000 city councils in the country that depend on tax contributions as their only stable source of income.
Orban has not mentioned this, but municipalities with less than 25,000 inhabitants are expected to be compensated for this cut, while the prime minister has ensured that he will speak individually with the big cities to see how to balance their accounts.
Since the 2018 local elections, most of Hungary’s major cities, including Budapest, are ruled by the opposition and the loss of this revenue could have a huge effect on their budgets if it is not compensated in some way.
The mayor of Budapest, Gergely Karácsony, has assured on Facebook that for “municipal governments, which were already on the brink, this measure means an execution.”
“The social, economic and political consequences of this government policy are incalculable,” he added.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.