A government decision could be adopted in mid-July regarding the organisation of high-attendance events which cannot be held until 15 August, Gergely Gulyás, the Minister heading the Prime Minister’s Office stated at the press conference ‘Governmentinfo’ held on Thursday in Budapest.
If the epidemic situation allows and the government’s decision makes it possible, the 20 August St. Stephen’s Day events could be held, he said, indicating that this would also form part of the restarting of the economy as the services and music industries as well as event organisation sustained the greatest losses due to the coronavirus epidemic.
Mr Gulyás also highlighted that regarding the fall in the number of workers, “a less pessimistic” scenario has come true; 120,000 to 130,000 workers could have lost their jobs due to the virus.
The objective of the government remains to create as many jobs as were wiped out by the virus, he said.
Next year, the rules relating to the tax of small taxpayer businesses (‘kata’) will change.
Mr Gulyás said they will submit a motion of amendment in connection with the bill serving as the basis for next year’s budget, based on which if a person pays their taxes in the ‘kata’ regime, in the case of invoices in excess of three million forints – provided that the recipient of the invoices is the same person – a 40 per cent tax will be payable on the part above three million forints.
The goal is, he said, to eliminate the abuses of the tax of small businesses, namely the practice of concealed employment.
In answer to a question, he confirmed that the amendments would enter into force in January 2021. The monthly fixed item – which is HUF 50,000 at present – will not change.
He said the goal is to put an end to the abuses related to ‘kata’ which manifest themselves in concealed employment. The government considered the recommendations of the Chamber of Commerce and Industry and other economic actors, this is why they are initiating this amendment, but the rules of ‘kata’ will not change this year. We need a taxation regime which does not give rise to abuses, he said.
He added that the Chamber of Commerce and Industry, too, took the view that large businesses tend to abuse the tax benefits offered to small businesses. It is necessary to put an end to this, and to use the system of ‘kata’ taxation according to its intended purpose.
He observed that companies with a staff of hundreds or even more than ten thousand employees also availed themselves of the loophole of ‘kata’ and this further resulted in the cessation of the labour law protection of workers.
He informed members of the press that Parliament could adopt the 2020 budget next Friday. This budget is a budget of economy protection which includes important, forward-looking measures such as the gradual reintroduction of the 13th month pension, he said.
He highlighted that the elderly would receive the first quarter of the 13th month pension already next year; the necessary funds are available in the 2020 budget.
Mr Gulyás also confirmed that from 1 July 2021, the infant care allowance (‘csed’) due for the first six months following birth would amount to one hundred per cent of the parent’s earlier income and would only be subject to the payment of personal income tax.
The goal of Hungarian family policy has always been to ensure that the decision to have children should not result in a voluntary decision on poverty, he said.
He mentioned as an example that in the case of an average income of HUF 350,000, so far a mother has earned a net HUF 232,000 salary; in the future, due to the more favourable tax regulations, ‘csed’ will amount to HUF 297,000.
The Minister said a government decision could be adopted in mid-July regarding the organisation of high-attendance events which cannot be held until 15 August.
If the epidemic situation allows and the government’s decision makes it possible, the 20 August St. Stephen’s Day events could be held, he said, indicating that this would also form part of the restarting of the economy as the services and music industries as well as event organisation sustained the greatest losses due to the coronavirus epidemic.
Mr Gulyás also highlighted that regarding the fall in the number of workers, “a less pessimistic” scenario has come true; 120,000 to 130,000 workers could have lost their jobs due to the virus.
The objective of the government remains to create as many jobs as were wiped out by the virus, this is why the Economy Protection Operational Group was set up under the leadership of Finance Minister Mihály Varga, he said.
The global pandemic situation is bad; however, in Central Europe, the number of active infections is on the decrease, he said, expressing hope that in Hungary by the weekend the number of active patients – currently standing at 906 – will fall below 900.
The Minister was asked whether the wearing of face masks on public transport and in shops would remain compulsory throughout the summer. Mr Gulyás said the Operational Group reviews the necessary protective measures with weekly regularity; the situation will remain unchanged next week.
At the same time, they would not like to uphold any measure any further than necessary, he indicated.
Mr Gulyás did not wish to comment on news reports that the metropolitan municipality procured personal protective equipment “at inflated prices”.
During the epidemic, it was not easy to procure test kits and protective equipment, and everyone procured them from sources they were able to find. If the metropolitan municipality procured them from left-liberal economic circles, it is hardly surprising. However, regardless of whether a local government is led by opposition or government-party politicians, on this matter he is understanding, he added.
He also mentioned that there is a state of disease control preparedness in Hungary, and while the relevant legislation lays down that with regard to this it is possible to ban events, this cannot restrict the freedom of assembly.
He said it is possible to state in general that today there is a sufficient number of physicians in Hungary, but it is a legitimate criticism that there are areas where there are shortages of specialist doctors.
Regarding the procurement of ventilators, he said the procurement of non-invasive machines was also justified as non-invasive ventilation was a suitable therapy in a significant percentage of patients.
In recent months, everyone on the market was eager to lay their hands on ventilators, and there was no guarantee that the orders placed would actually be supplied. Based on the experiences of the Ministry of Foreign Affairs and Trade, also at present there is keen interest on the market as the number of new infections is very high, Mr Gulyás said, adding that the goal is to sell the ventilators that are not required.
He mentioned that the national consultation related to the coronavirus epidemic had started.
According to the government, also in the future a condition of a successful fight against the epidemic will be for people to identify with the measures adopted and to follow them, he said, adding that we must prepare for a possible second wave of the epidemic in the autumn, and this is why it is important for the government to acquaint itself with the opinions of Hungarian citizens on the widest possible spectrum of issues, extending from the restarting of the economy all the way to the protective measures adopted during the epidemic.
He said it is possible to question the legitimacy of or to disagree with the national consultation; however, the misappropriation or collection of consultation forms is a crime falling into the category of misuse of personal data.
In answer to questions relating to the refurbishment of the Chain Bridge, Mr Gulyás said they would like the capital to refurbish the bridge, and with this the government offered a contribution at the same rate as to former Mayor of Budapest István Tarlós earlier.
However, other than conducting communication campaigns, the metropolitan municipality has recently done nothing in the interest of the refurbishment of the bridge, notwithstanding the fact that it has funds on its account amounting to six times the sum necessary for the project, and the new public procurement documentation has not even been released yet, he pointed out.
He added that the metropolitan municipality seems to be only too happy to engage in disputes with the government. However, it would be for the best if they picked topics that are less important than the Chain Bridge.
He observed that there are structural problems with the bridge, debris could fall off it, and this must be avoided. Therefore, they are asking the metropolitan municipality to publish a public procurement call for proposals within the shortest possible time and to refurbish the bridge because all the necessary funds are available.
Regarding the raising of parking fees in the capital, he took the view that this does not solve anything. At the same time, the metropolitan municipality has recently adopted measures which have caused major traffic jams which are not desirable from an environmental point of view either.
Already now, parking fees are at the limit of what is bearable, and the government does not support any further increases, the Minister said.
Concerning the fact that districts led by left-wing politicians are asking the government to reimburse their losses caused by the epidemic, he said the coronavirus epidemic caused the state to sustain the great losses, compared with which the losses of local governments are moderate.
We must share the losses we have sustained, and the people too have sustained major losses, he added.
Regarding the setting up of a committee to look into the projects of the Tarlós era, he said everyone is welcome to investigate anything they like; at the same time, he wished them all the best with their work.
It would be better to take action and to adopt meaningful decisions, he said.
In response to a Facebook post regarding the capital by former prime minister Ferenc Gyurcsány – in which he said “if you want a fight, so be it” – the Minister pointed out that Ferenc Gyurcsány’s time in government was the most unsuccessful, most harmful and most wasteful period in Hungary’s history.
The incumbent government started work in 2010 with an 85 per cent sovereign debt, in a practically bankrupt country where state administration was in ruins and an inconceivably desecrated policy was in effect regarding Hungarians beyond the borders, Mr Gulyás pointed out.
Compared with this, upon the departure of former Mayor of Budapest István Tarlós, some 70 per cent of the capital’s annual budget was available in the form of reserves. Under the circumstances, any comment by the former prime minister appears to be more than insolent.
In answer to a question about the date of the next meeting of the Council of Metropolitan Public Developments, he said earlier they even had an agenda for the meeting, but Mayor of Budapest Gergely Karácsony asked him to postpone the meeting for the time being.
The government is open to a dialogue if the metropolitan municipality feels the need to discuss any issue and, provided that they are prepared to look for opportunities of cooperation, rather than for disputes, the dialogue could be resumed in September, Mr Gulyás said.
Regarding the postponement of the construction of the South Pest bicycle path, he said they are expecting the capital’s leadership to change their minds, and it is to be hoped that the decision was not driven by a desire for political revenge. He observed that – as far as they can see – in recent weeks the metropolitan municipality has struck off the list well-prepared, thoroughly planned and meaningful projects which could be partly implemented from EU funds.
In answer to a question about universities, he said the fact that foundations have been set up significantly reinforces the autonomy of universities as this limits the scope for state intervention.
The involvement of ministers on the boards of trustees of some university foundations could be helpful, Mr Gulyás pointed out.
Regarding the pay of school guards, he said, according to plans, retired police officers could be employed with a salary below the pay of teachers. This would be extra money for them in addition to their pensions.
In answer to another question, Mr Gulyás highlighted that there are some 75,000 students who will receive their university degrees in the absence of language certificates.
As to whether the fact that in the wake of the central bank’s decision the exhange rate of the forint fell could present a risk, he said with regard to the independence of the National Bank of Hungary, the government has no responsibilities of any kind in the area of monetary policy.
In the context of the possibility of accession to the Eurozone, he said the government has not adopted a decision about accession, and while the economic conditions for accession would be fundamentally available, they can see the difficulties which the introduction of the common currency caused or failed to resolve elsewhere.
Last week, the number of active job-seekers started decreasing. The primary goal is not for the state to provide jobs; however, should the need arise, it will, and the measures that enable this have been adopted, he said.
He stressed that they are supporting investments and are helping to retain jobs because the more jobs that come into being, the more effectively they are able to manage the situation.
In response to news reports that only Fidesz-led local governments have been awarded in tourism-related calls for proposals, he pointed out that the government required the tourism agency to focus solely on professional criteria.
There is a need and a possibility for supporting hotels now; in the hotel industry, there was effectively a complete shutdown for 3 to 4 months, he stated.
In answer to the question as to whether the government supports the proposal of (Fidesz) Member of Parliament Lajos Kósa relating to beer and soft drink manufacturers which seeks to support Hungarian businesses, the Minister said “we are on the side of market competition also where beer is concerned”.
In the context of migration, the Minister heading the Prime Minister’s Office said the government continues to reject the idea that decisions about immigration should be made outside national competence and continues to reject migration.
In Hungary, it is possible to state openly that there is a connection between terrorism and migration. As long as the majority led by the Fidesz-KDNP alliance is able to form a government according to the democratic decision of the people, they will reject migration, and the European Treaties are clear regarding the fact that this issue falls within national competence, he underlined.
Regarding the issue of the port in Trieste, Mr Gulyás said it boosts foreign trade if Hungarian businesses are able to channel their products to foreign markets as easily as possible; this is why it is important to have a Hungarian port.
They previously tried to acquire a port in Slovenia, but there they failed to reach an agreement. This is why they decided to buy an area of 32 hectares in Trieste for EUR 31 million. There are few better investments than gaining access to a port. So far, an amount of EUR 25 million has been paid for the area, the Minister said.
Concerning the situation surrounding the news portal Index and claims that the government would muzzle them, he said the Hungarian state only has the duty to guarantee freedom of the press which is laid down in the relevant legal rules, the constitution and the media legislation.
Beyond this, the Hungarian government cannot interfere with press matters as that would constitute an infringement of freedom of the press, the Minister said.
He highlighted that the availability of diverse information is important and valuable. In his view, in Western Europe there are no comparably diverse opportunities for providing and obtaining information.
Regarding György Simonka’s case, the Minister said they are not aware of any delay on the state’s part, there is a set order for the collection of debts, and in this claims of the state take priority.