Hungary Taxing Migration NGOs

June 20, 2018 Taxation in Hungary

Migration in HungaryBUDAPEST – Hungary’s government is taking an anti-immigration stance, and looking to tax those helping migrants come into the country.

The government of Hungary has announced that it will be implementing a special 25 percent tax on any NGOs which it says are “organizing immigration”.

The tax will presumably be levied on all aid groups which help migrants come to Hungary, however, the exact details of who will be targeted by the tax have not yet been released.

Further, the mechanism for collecting the tax, or when exactly the tax will come into force have also not been detailed.

The government claims that the tax is needed because defending the nation against illegal migration carries a significant financial burden, which has and will continue to weigh down the national budget.

Questions have already been raised regarding whether the tax will breach constitutional law or EU law.

The question of the legality of the tax will be examined by Venice Commission, a Council of Europe expert body, later this week.

However, Hungary’s Foreign Minister Peter Szijjarto has stated that the government will not await the result of the Commission’s findings, and the new tax law will be approved later this week.