The Prime Minister has forbidden municipalities from raising local taxes, according to the Thursday edition of the Official Gazette.
The amendment, entitled “Government Decree on Local Tax Measures to Mitigate the Impact of the Coronavirus Pandemic on the National Economy,” actually extends a previous measure stating that local governments would not be permitted to raise local taxes in 2021.
“The current provision prohibits local authorities from raising local and municipal taxes, introducing new ones, or abolishing existing tax credits”
-the order reads.
The decision was signed by Prime Minister Viktor Orbán (pictured) and went into effect on Friday.
The move, although affecting all local authorities, is likely to exacerbate relations between the City of Budapest and the Hungarian government, which has been troubled in recent days due to the failure of the latter to remit funds it normally provides for public transportation in the capital.