Hungarian government bans local municipalities from raising taxes

3 December 2020

The Ministry of Finance has published a decree in which it “prohibits local governments from raising local and municipal taxes in 2021, introducing any new taxes, or abolishing existing tax reductions”. This decree will only last throughout the existing state of emergency. Opposition politicians claim this will bring chaos, as according to law, local municipalities will be banned from introducing the laws that they already voted on and should enter into force on January 1st 2021.

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