Hundreds Protest In Budapest As Parliament Discusses Orban's Tax Changes

Protesters block traffic at Budapest's Erzsebet Bridge on July 12 to show their displeasure with a government proposal that could expel hundreds of thousands of small businesses and entreprenuers from a simplified tax regime known as KATA.

BUDAPEST -- Hundreds of protesters blocked a bridge over the Danube River in Budapest as parliament debated a motion by Hungarian Prime Minister Viktor Orban's conservative government that would increase the tax rate for hundreds of thousands of small businesses.

Traffic was blocked for three hours on July 12 in the capital along the main thoroughfare, with protesters chanting "withdraw it" in one of the first major shows of public disconnect with the nationalist leader’s government since his April reelection.

Orban's popularity has weakened in recent months, hit by raging inflation, a tumbling currency, and disputes with the European Union over the government's perceived lack of democratic standards.

His government submitted the new amendments to parliament on July 12. It proposes to tighten eligibility for a simplified tax regime that many small businesses opted into because of the eased administration and low tax rate.

A vote on the new law could come as early as July 13. If it passes, it will come into effect on September 1.

The opposition Jobbik party has called on Orban to withdraw the legislation.

With reporting by Reuters