Hungarian Parliament adopts resolution opposing EU directive on Pillar Two global minimum tax
The Hungarian Parliament opposes the EU directive on Pillar Two global minimum tax due to concerns about economic implications amid the Russian-Ukrainian war and inflation. Hungary stands as the only member state against the directive, arguing it may harm European competitiveness, considering their low corporate tax rate of 9%. Poland supports the global minimum tax deal.
Hungary’s Parliament has adopted a resolution opposing the proposed deal on a global minimum tax. This comes days Hungary blocked the directive at the EU Council.
The reasons given for the resolution were inflation and the economic crisis due to the ongoing war between Russia and Ukraine. Hungary said the OECD Pillar Two’s minimum tax, which the EU directive is seeking to implement, will put European countries at a competitive disadvantage.
Hungary’s corporate tax rate stands at 9%, the lowest in Europe. The country remains the only member state opposing the proposed EU directive.
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