COMPETITION OR SOLIDARITY? USE AND MISUSE OF LOCAL BUSINESS TAX IN HUNGARY
According to the OECD categorisation of local tax autonomy, Hungary belongs to that group of countries, which has relatively high discretion in municipal taxation.
In the average of OECD countries 41% of municipal tax revenues are raised from that group of taxes, where municipalities are authorised to levy taxes within regulated minimum and maximum tax rates.
In Hungary, this ratio in 96%, because of the LBT dominance.
Gábor Péteri, a Hungarian public finance expert, writes on the use and misuse of the local business tax in Hungary. We invite you to read his text.