mszp.hu | Közös akarattal
2022. február 15. 18:59

Government Fails to Act, in Fact, Profits from High Inflation and High VAT!

Government Fails to Act, in Fact, Profits from High Inflation and High VAT!
The government continues to jeopardise people's livelihoods, politicians of United for Hungary warn. Skyrocketing prices, record-breaking inflation, a crisis of livelihoods, sham measures: this is the balance sheet of the Orbán government after 12 years in power, they say.

In an online press conference on Tuesday, socialist Lajos Korózs said that Hungary is facing a very serious livelihood crisis, while prices have gone out of control. Inflation is destroying families first, then the economy, and finally the whole country," argued the chairman of the National Assembly's Committee on Public Welfare. "Even our grandchildren will have to pay the remaining debt: this policy is unacceptable to us," he added.

Inflation perceptions and inflation expectations are significantly higher than what the CSO has recently published on "inflation", he said. He underlined that where basic foodstuffs had risen by 20-30%, "you simply cannot explain the processes that are taking place in the country anymore with a bunch of hocus-pocus."

"The government is not acting, in fact, it is profiting from high inflation and high VAT," said the candidate for the 3rd constituency of Heves County.   He stressed that the opposition had previously repeatedly demanded that the VAT on basic foodstuffs be lowered to 5 percent and that on all other foodstuffs to 18 percent.

The MP pointed out that practically everything is being devalued as a result of Fidesz policies, including family benefits, family allowances, maternity allowances and public health care support, the amounts of which have remained unchanged for 13 years and which are now no longer helping the most deprived.

Jobbik's MP Róbert Dudás said that the government is taking sham measures because the price freeze and the benefits given to the target groups are intended to make society realise the extent of the crisis as late as possible.

Hungary has the highest inflation in the European Union, the candidate for the 2nd constituency of Heves County said. Hungarian VAT is not only the highest in the EU, but also one of the highest in the world, he added.

Prime Minister Viktor Orbán said that the price of fuel is high in the West, too, which is true, but there it is not paid for by the weak Hungarian forint and the low average Hungarian wage, Róbert Dudás pointed out. The MP stressed that three times a proposal to reduce the price of fuel had been submitted to Parliament, but each time it had been rejected.

Richárd Barabás, spokesman for Dialogue (Párbeszéd party) said that the introduction of official prices proves that the government does not have the right tools to protect the economy and is therefore "resorting to old and bad habits." He added that if it weren't for the "official energy prices, termed by Fidesz as reducing the overheads," inflation would have been above 10 percent already a long time ago.

The deputy mayor of Újbuda said that not only VAT should be reduced, but also "a fairer personal income tax system should be created."

In Hungary, wage contributions are very high, which is bound to cause problems for many people, the Dialogue politician pointed out. He also stressed that the transaction tax has been passed on by financial institutions to their customers, and the opposition is ready to support banks in the creation of so-called tax-free accounts.

Richárd Barabás concluded by saying that there is a need for a substantial and meaningful wage increase and a stable and predictable career in the public sector.

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