Despite the fact that it affects hundreds of thousands of taxpayers, a legal amendment that effectively ends the popular KATA tax regime is being rushed through Parliament at lightning speed. Submitted by Deputy Prime Minister Zsolt Semjén on Monday, the bill is expected to be discussed and then come to a vote on the very next day in the National Assembly.
While the proposed bill does not officially end the tax scheme for small-scale entrepreneurs, it will only permit them to receive money from private individuals from now on. However, taxi drivers under KATA will be exempt from this restriction.
This change will essentially mark the end of KATA for most of the 450,000 people who use it, as it will be impractical for sole proprietors if they cannot accept businesses as clients. If the law submitted on Monday enters into force on Tuesday without modification, then the vast majority of KATA taxpayers will have until September to switch to a tax regime that is more expensive and involves much more paperwork.
But it appears that not only is the law being voted on incredibly quickly, but the government itself did not have much time to get familiar with its details. Chancellor Minister Gergely Gulyás said at last Thursday’s Government Information briefing that the proposal was not ready, yet the 22-page draft law was posted on Parliament’s website at noon on Monday.