LMP calls for a 25% corporate tax rate for multinationals

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The opposition LMP has proposed introducing a tax rate above 25% to ensure that multinational companies shoulder their fair share of the public burden, the leader of the party’s parliamentary group said on Sunday.

The government says the itemized tax for small businesses (kata) is a form of legalized tax evasion that must be stopped, Peter Ungar told a news conference. LMP believes, however, that it is the very low corporate tax paid by multinationals “that is the real legalized tax evasion”.

Corporate tax revenues amounted to 500 billion forints (1.25 billion euros) in 2021, Ungar said, while Hungarian oil and gas company MOL made revenues of more than 300 billion forints in the last quarter of last year – less than two-thirds of Hungary’s total corporate tax revenue that year. He added that Audi had repatriated 4 trillion forints of profits from the country over the past ten years. Partly because of strategic partnership agreements and partly because of the very low corporate tax rate, Hungary’s big companies are not taking their fair share of the public burden, Ungar said.

Ungar said it is much easier to collect the necessary money in the budget during a crisis from these large companies than from a small entrepreneur who, for example, works in film production and therefore bills companies.

He also said that LMP thinks it would be very effective to implement a building insulation program in the energy crisis. This would reduce household energy costs, Hungary’s energy dependency and greenhouse gas emissions, while creating jobs and boosting the economy, Ungar said.

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