TH€ DIRTY TAX GIFT AWARD
5. Company car privilege is eating into Hungary’s wealth
Low taxation and unlimited private use of company cars systematically incentivize car use over environmentally friendly transport modes – with all the negative consequences for health and environment.
Hungary’s system of car taxation is an enormous incentive for car use – with all the negative consequences for health and environment. Companies pay a relatively modest tax for their company car, and then this car can be legally used for private purposes without any limit. And if a car owned by a private person is used for business purposes, then all the fuel costs plus an allowance of HUF 15 (about EUR 0.05) per kilometer can be paid out free of taxes – moreover, as this is not controlled, the private use accounted for as company use is widespread.

Driving to environmental destruction: Prices which do not reflect costs cause extremely expensive damage, undermine economic competitiveness, and contribute to the deterioration of our health and environment. It is impossible to finance such a system in the long term – and so, sooner or later, it will collapse.

Nominated by
Clean Air Action Group (Levegő Munkacsoport)
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