Hungarian employees block roads to protest new tax regulation

BUDAPEST, Hungary (AP) — Protesters in Hungary’s capital blocked important site visitors arteries for the second day in a row Wednesday in opposition to a tax overhaul pushed by means of this week by the nation’s right-wing governing occasion.

A number of thousand demonstrators, lots of them unbiased entrepreneurs affected by the brand new modifications, gathered in a important sq. beside Hungary’s parliament to protest a regulation handed Tuesday that many concern will lead to vital tax hikes. Following the protest, most marched by means of central Budapest throughout peak rush-hour site visitors.

Hungary’s ruling Fidesz occasion, led by nationalist Prime Minister Viktor Orban, used its parliamentary supermajority to move the brand new regulation, which targets a well-liked tax scheme permitting small companies and particular person contractors like hairdressers to pay a low flat tax price.

Protester Tibor Tarcsay, 33, mentioned his livelihood as a contract translator is jeopardized by the modifications, and he’s unsure how he’ll make ends meet as soon as it takes impact in September.

“I’d transfer overseas,” he mentioned. “In two months, crowds of persons are going to be standing in line at charity organizations to get a can of lentils.”

Estimates recommend as much as half one million employees in Hungary use the tax scheme often called KATA.

However Hungary’s authorities says many firms have abused the system by having employees on contracts moderately than using them, thus depriving the nation’s funds of between 250 and 300 billion Hungarian forints ($614 million to $736 million) in tax revenues yearly.

The protest, which adopted the occupation of two bridges Tuesday over the Danube River, was the primary signal of common discontent in Hungary since Orban and his Fidesz occasion have been reelected in a landslide in April.

Hungary has been dealing with report weak point of its foreign money towards the euro and the greenback, in addition to the best inflation in almost 25 years. The federal government is eager to fill gaps in its funds left by main handouts to voters earlier than the election.

Critics of the brand new tax regulation say it was handed with out consulting affected employees, and pushed by means of Hungary’s parliament in solely a single day.

Balazs Zoltan Biro, 37, works for a meals supply firm in Budapest as a bicycle courier. Blocking site visitors with different demonstrators at one among Budapest’s busiest intersections, he mentioned he believed civil disobedience was the final resort for opponents of Hungary’s authorities.

“That they decided with the stroke of a pen, with out negotiating with these whom it actually impacts, isn’t democratic in any respect,” he mentioned.

One other demonstrator, ebook editor Marta Nagy, mentioned she was more likely to lose all of her shoppers.

“The worst can be if I’ve to surrender my rented house and transfer residence,” she mentioned. “What’s going to I stay on?”