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Orbán cabinet: Budapest ‘can’t get out of paying taxes’
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The Budapest municipality is going against the Constitutional Court’s decision, which in October rejected Budapest’s proposal that the solidarity tax the municipality was called on to pay to support poorer localities was unconstitutional, a state secretary of the finance ministry said on Monday.
State secretary András Tállai said that this year, 848 “wealthier” localities paid a solidarity contribution to aid 1,250 localities in performing their tasks. “It is peculiar that it is the richest city of the country, the capital, that finds supporting poorer localities difficult,” Tallai said.
Tallai said government support for local authorities will increase to 1,266 billion forints (EUR 3bn) from 1,050 billion this year, and additional funds will flow into wage costs.
In reaction to Karácsony’s statement that the city would not pay some 50 billion forints in solidarity contribution, Tállai said,
“Everyone has to comply with the law.”
Last week, Budapest Mayor Gergely Karácsony said that in a bid “to retain the municipality’s self-determination and resources,” the city’s budget had been drafted on the assumption that
“Budapest will pay as much solidarity tax to the central budget as it receives from central coffers to finance its services.”