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Hungary to Face IMF Demands to Change Taxes, Nepszabadsag Says

Hungary will face demands from the International Monetary Fund and the European Commission to change its “flat” income tax system in return for aid, Nepszabadsag reported, citing an unidentified government member.

The international lenders will be “determined” in asking for the tax amendments and will also request for a ban to be lifted on building shopping malls and a cut in subsidies for public transport in Budapest, Nepszabadsag said.

Hungary will probably pass amendments to central bank legislation by May 21 or May 29 which may allow the Cabinet to begin aid talks with the IMF as early as the first week of June, Nepszabadsag said.

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