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Orban says global minimum tax plan absurd

Christian Fernsby |
Hungarian Prime Minister Viktor Orban said on Wednesday a proposed global minimum corporate tax is "absurd" and his government would need to consider contingency plans if the initiative goes through.

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Orban said his government opposed the move as it went against efforts to attract foreign investment with low taxes.

Hungary's 9% corporate tax rate is among the lowest in the 27-member European Union and has used it to attract major investments in its car and manufacturing sectors that have lifted economic growth and employment, helping the conservative nationalist Orban hone an image of strong economic management.

"I consider it absurd that any world organisation should assert the right to say what taxes Hungary can levy and what taxes it cannot," said Orban.

"Especially as we are not a tax haven, because the low Hungarian corporate tax rate is not meant to attract certain companies to declare their taxes here," he told a business conference.

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