French Finance Minister Bruno Le Maire said on Monday he hoped Hungary would soon scrap its veto on the EU’s plan for a global minimal corporate tax, adding France would implement such a tax at a national level in early 2023 if Budapest stands by its refusal.
“We hope that Hungary will lift its veto on minimal global taxation in the coming days,” he told reporters before a Eurogroup meeting in Brussels.
The minimum tax is the second of a two-pillar deal reached last year among nearly 140 countries to rewrite the rules of cross-border taxation to take better account of how big internet companies can book profits in low-tax countries.
Hungary has used its 9% corporate tax rate and generous government subsidies to attract major investments by German carmakers and Asian battery manufacturers to bolster its export-driven economy.
“This is a job killing tax hike, which, if implemented with Hungary’s approval, would wipe out tens of thousands of jobs,” Prime Minister Viktor Orban said. “The tax issue is not a global one, it falls under national jurisdiction.”