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Hungarian Prime Minister Gordon Bajnai has announced that the tax burden on the country’s highest earners will be raised from 2010 to create room for a cut to the lowest income tax rate and a cut to payroll tax.

The government proposed real estate tax will be introduced on a progressive basis, with properties valued at over HUF30m (USD150,000) but less than HUF50m (USD250,000) subject to a 0.35% annual levy. Properties worth more than HUF50m will be subject to a 0.5% annual levy. Bajnai is also to introduce a tax on wealth, the details of which have not yet been released. The measures will be tabled in parliament no later then July, and if approved will be implemented in 2010.

Speaking to a press conference, Bajnai stated:

"The goal is to leave more money with those who work and bring the country out of the crisis with labour."

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