National Chamber of Agriculture warns against planned local tax on farmland

The National Chamber of Agriculture (NAK) disagrees with the idea of a tax on farmland in any form. Many local councils plan to levy a tax on farmland after recently adopted amendments to tax legislation taking effect from January 2015 allow local municipalities to introduce a new tax on any item not falling under the scope of either central or local taxes. NAK said it has surveyed the plans of Hungary’s local municipalities regarding the farmland tax.About 50 municipalities have plans to levy the tax. NAK said the idea of the farmland tax raises several concerns. Landowners could pass the tax on to farmland users, in which case farmland users could be directly paying the local business tax and indirectly the farmland tax at the same time, they said. Another problem is that the farmland tax would withdraw funds from the farm sector, NAK added in the statement. Hungarian agricultural producers and food industry companies are all members of NAK on a mandatory basis.