Hungary to introduce financial transactions tax

Hungary's parliament will introduce a new tax on financial transactions to raise revenue for the debt-stricken country.The levy is aimed at reducing deficits in line with conditions for a bailout set by the European Union and other institutions.Transactions at both Hungary's central and commercial banks will now be taxed starting from next year. The rate of 0.1 percent of each transaction, to a maximum of about 25 dollars, is expected to boost tax revenues by about 1.6 billion dollars next fiscal year.

The move is the latest in a series of new levies, including the so-called "potato chip tax" targeting food products with high salt or sugar content.Hungarians also pay a telecom tax for phone conversations and SMS messages.

Many other EU members are also eyeing a financial transactions tax to bolster their defenses against future crises. In France, a similar tax takes effect in August to control speculative tradin